Bitcoin Funds Sees Largest Weekly Outflows in a Year, ‘Hawkish Rhetoric’ to Blame
Investment funds backed by bitcoin (BTC) last week saw their largest outflows for a single week since June of 2021, with USD 132.7m being withdrawn by investors, according to data from the crypto investment and research firm CoinShares.
The outflows from crypto funds were the largest for funds backed by bitcoin, with ethereum (ETH) funds following behind with outflows of USD 25.1m for the week. The third-largest outflows were seen by solana (SOL)-backed funds, which posted outflows of USD 1.5m.
On the positive side, the “Other” category saw rather large inflows of USD 39.6m last week. These inflows were made up almost exclusively by FTX token (FTT), the exchange token issued by FTX, with USD 38m in inflows.
Meanwhile, so-called multi-asset funds – funds that are backed by several digital assets – saw inflows totaling USD 1.9m for the week. The growth for the latter category of funds came despite worsening sentiment in the crypto market, with BTC trading down by about 3% for the week.
Commenting on the flows, CoinShares said in its report that the outflows seen over the past four weeks – now totaling USD 339m – “doesn’t reflect the same bearishness seen at the beginning of this year” when USD 467m left the space.
In terms of the bitcoin outflows specifically, CoinShares said that it is “difficult to ascertain the precise reason for this,” although it suggested that the “hawkish rhetoric” from the US Federal Reserve is playing a role.
The fund provider that saw the largest outflows last week was ProShares, which recorded outflows of USD 91.1m. ProShares is the company behind the Bitcoin Strategy ETF (BITO), the first – and still most popular – bitcoin futures-backed exchange-traded fund (ETF) in the US.
On the other hand, the
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