More than half a billion dollars have been invested in Bitcoin exchange traded funds since the start of the year, of which $126 million has flowed into ETPs (exchange traded products) in the past week, according to Coinshares.
Ethereum suffers
This is because the $4.3 million inflows of Bitcoin products and multiple digital assets were raised by investors who took money out of their Ethereum-based funds.
“Ethereum continues to suffer, with another week of outflows totaling $32 million,” wrote James Butterfill, director of research at Coinshares, adding: “Ethereum has endured 9 consecutive weeks of outflows suggesting sustained negative investor sentiment.”
The above data shows that there is a stark contrast in sentiment among investors when it comes to the two most popular cryptocurrencies.
After the latest outflow, Ethereum-based funds have now lost $357 million since the beginning of the year.
Fidelity has turned the tables.
Although blockchain equity funds, as a category, saw outflows totaling $26.3 million last week, Fidelity’s new cryptocurrency ETFs (released last April) broke that trend.
Fidelity’s cryptocurrency fund portfolio contains shares of publicly traded companies in the cryptocurrency industry, such as Block Inc (BLOCK), Coinbase (COIN) and Marathon Digital (MARA). The metaverse fund holds shares of companies such as Meta Platforms (formerly Facebook) and Adobe (ADBE).
Many cryptocurrency companies have implemented hiring freezes, layoffs or canceled job offers in an effort to prepare for “Crypto Winter”. Despite this Fidelity now manages a total of $22 million in two cryptocurrency funds.
The Fidelity Crypto Industry and Digital Payments ETF added $2.4 million and the Fidelity Metaverse ETF added another $1.1 million. Each of the funds has a total of $11 million in assets under management, according to Coinshares.
The largest outflow last week came from the Invesco Coinshares Global Blockchain UCITS ETF, which saw investors pump $21.6 million – or 82% of its total value of $26.3 million, as noted in last Monday’s blockchain equity fund report.
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