Cryptocurrency investment products and funds had net outflows last week totaling a record $207 million, a report from digital asset manager CoinShares showed on Monday, as prices continued their tumble in the first trading week of the year.
The sector has experienced four consecutive weeks of outflows since mid-December, reaching a total of $465 million, or 0.8% of total assets under management.
Bitcoin, the world’s largest cryptocurrency in terms of market capitalization, posted outflows of $107 million in the week to Jan. 7.
CoinShares investment strategist James Butterfill said the outflows were a “direct response to the FOMC (Federal Open Market Committee) minutes which revealed the U.S. Federal Reserve’s concerns for rising inflation and the fear amongst investors of an interest rate hike.”
A policy tightening by the Fed is a negative factor for risk assets such as cryptocurrencies because of tighter liquidity conditions and increased market volatility.
Over the last four weeks, Coinshares noted there has been greater investor activity than usual.
Since the start of the year, bitcoin has shed nearly 10% of its value against the U.S. dollar. On Monday, it fell below $40,000 for the first time since September 2021.
“A phase of heavy loss realization by top buyers has followed the Dec. 4 flush-out (in bitcoin),” said blockchain data provider Glassnode, in its latest research report on Monday.
“In the weeks since, onchain behavior has been more heavily dominated by the HODLer (long-term holders) class, with little activity by newer market entrants,” it added.
Ethereum-based products had outflows of $39 million last week, posting five straight weeks of outflows with a total of $200 million. CoinShares said on a proportional basis, Ethereum’s outflows were 1.4% of total AUM, higher than that of bitcoin.
Blockchain-linked equity investment products did not escape the negative sentiment for the sector, with outflows of $10 million last week.
Assets under management at Grayscale and CoinShares, the world’s two largest digital asset managers, fell from their highs to $38.2 billion and $4.3 billion, respectively.
(Reporting by Gertrude Chavez-Dreyfuss; editing by Richard Pullin)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
