By Gertrude Chavez-Dreyfuss

NEW YORK, (Reuters) – Cryptocurrency funds and investment products showed net outflows on Monday for the second consecutive week. This was despite persistent concerns over regulation and possible consequences from the Russia-Ukraine war.

After experiencing net outflows in excess of $110million the week before, the sector saw $47 million of outflows during the week ending March 18. Inflows to digital assets investment products were seven weeks consecutively prior to the two previous weeks.

Despite ongoing attempts to regulate cryptocurrency, the outflows occurred. The executive order signed by President Joe Biden a few weeks earlier required that the government assess both the risks and the benefits of creating the central bank digital dollars, along with other issues related to crypto.

After $70million outflows, $33 million was the highest outflow in the last week. However, year-to-date flows were positive at $63 millions.

Bitcoin was at $41,047 on Monday. It fell 0.5%. About 18% has been gained since bitcoin’s intra-day low of February 24th, when Russia invaded Ukraine.

“Even though bitcoin has retraced a bit after tagging $42,000 over the weekend, it still managed to close the week well above $40,000,” said Mikkel Morch, executive director at digital asset hedge fund ARK36.

The retrace is healthy, after the notable rise in bitcoin over the previous week. This should not be considered a negative reaction or a sign of a particular piece geopolitical news. There is good potential for continuation as long as bitcoin remains above $40,000

Last week’s outflows for Ethereum-based products were $17 million, lower than last week’s $50 million outflows. Analysts said that investors continue to be affected by negative sentiment. Year-to-date, outflows have reached $151 million or 1.2%, which is $17 million less than the $50 million reported last week.

However, inflows to other altcoins like,, and were higher last week.

Also, net inflows from blockchain-linked equity investment products reached $17million last week. This is an increase of $4 million.

Grayscale and CoinShares are the two biggest digital asset managers in the world, with assets under their management of approximately $37.25 billion each.