Bitcoin and Ethereum Funds Record $546 Million in Weekly Outflows: CoinShares

After five weeks of inflows, bitcoin-related investment funds saw $400 million worth outflows last week.

Crypto investment funds took a hit last week amid a broader market selloff that saw major indices across the world retreat. 

Data from CoinShares shows that digital asset investment funds recorded $528 million worth of outflows last week, while funds related to bitcoin and ether contributed to a majority of the negative flows. 

Bitcoin funds saw total outflows of $400 million after five weeks of inflows, despite BlackRock’s spot bitcoin ETF recording a significant inflows. Ethereum-related funds saw $146 million worth of net outflows, with an exodus of capital from Grayscale’s ETHE playing a large role in that number.

CoinShares’ head of research James Butterfill suggested that investor sentiment had likely turned following fears of a recession in the US, coupled with the effects of broader market liquidations across asset classes.

“Trading volumes totalled US$14.8bn [billion] last week in ETPs [exchange-traded products], representing a lower than average proportion of the total market at 25%. The price correction from Friday’s close saw US$10bn wiped off total ETP AuM [assets under management],” said Butterfill.

In fact, more than $4.7 billion worth of that trading volume in spot bitcoin ETFs was a result of the market volatility on Monday alone. Data from Sosovalue shows that spot bitcoin ETFs recorded $168 million worth of outflows on the day. Meanwhile, ether spot ETFs recorded $48.7 million worth of inflows.

Bitcoin is down 16% over the last week, trading at around $55,800 at press time, while ether is down 25% over the same period, trading at roughly $2,500. Both assets are up more than 6% over the last 24 hours, however, suggesting investor sentiment hasn’t completely shifted.

Onchain data from Arkham also shows that institutional investors were not as fazed by Monday’s market downturn. One of the newly disclosed institutions participating is Europe’s fourth-largest investment manager Capula Management, which said it held close to $500 million worth of BlackRock and Fidelity’s spot bitcoin ETFs.