21Shares closes down five funds following month-to-date losses rising to $16 million

The world of cryptocurrencies is currently surrounded by FUD. While speculation of recovery has kept investors optimistic, the actions of industry players point in the otherwise direction.

21Shares takes the shot

21Shares, one of the biggest cryptocurrency fund operators, shut down six of its funds owing to a decrease in demand from traders and investors. The Switzerland-based company named the five crypto funds that went under:

1. 21Shares S&P Risk Controlled Bitcoin Index ETP (SPBTC), 
2. 21Shares S&P Risk Controlled Ethereum Index ETP (SPETH), 
3. 21Shares DeFi 10 Infrastructure ETP (DEFII), 
4. 21Shares Crypto Layer 1 ETP (LAY1), and 
5.  21Shares USD Yield ETP (USDY).

Another ETP, called the 21Shares Terra Classic ETP (LUNA), is set to be delisted by the company around June 12. All in all, the combined value of the six ETPs is around $700,000.

According to the head of global communications at 21Shares, Arielle Pennington, the company is going to be focusing on the demand note for the rest of its ETPs. As per Pennington, the company noted more inflows over the month of January 2023 as compared to the same time period last year. 

Institutions keep pulling out

In the span of just 17 days, institutions have managed to pull out over $16.3 million worth of assets in the case of 21Shares. Nearly $9.2 million out of this came in the week ending March 10. Regardless, the year-to-date flows are still positive in the span of two and a half months.

BTC/USD 1-day chart

Bitcoin price is currently above the $25,000 mark and is keeping itself above this crucial level as well as a psychological support line. A sustained rally could incentivize bulls to propel the biggest cryptocurrency in the world.