Bitcoin funds saw largest single week of outflows since June 2021

Last week saw institutional investors lose $133 million in Bitcoin (BTC), marking the largest outflow since June 2013.

The latest edition of CoinShares’ Weekly Digital Asset Fund Flows Report shows that the total outflows from digital assets for the week ended April 29 were $120.1 million. However, large Bitcoin outflows were only marginally offset in part by unexpected $38 million worth inflows to FTX Token products.

The month-to-date outflows of BTC funds for April are now $310.8 million, thanks to the $132.7 million in outflows last week.

BTC funds experienced a significant outflow in the last week. This was due to a bearish trend that began in June 2021. It was caused by major FUD in news, including Tesla stopping BTC payments for its cars because of environmental concerns and China imposing its crypto mining ban.

CoinShares reported that although there isn’t a strong indicator as to why bearish sentiment has resurfaced last months, it did mention a few possible factors.

“It is hard to determine the exact reason for this apart from the hawkish rhetoric of the US Federal Reserve”

BTC’s price has fallen 18.2% over the past 30 day, compared to other top assets and stock market indexes. It currently stands at $37.970 as of this writing. Many observers attribute this to the fear that inflation and the Federal Reserve’s future interest rate hikes will cause the BTC price to drop further.

A broader view shows that the total month-to-date outflows for all digital assets tracked by CoinShares reached $326.1 million. This suggests that institutional investors are looking to reduce risk with crypto investments.

This doesn’t reflect the bearishness that was evident at the start of the year, but it is still close to the US$467m inflows. CoinShares reported that the outflows were evenly distributed between Europe (59%) and The Americas (41%).

Related: Why Bitcoin prices are holding steady at $38,000

The closest competitor to Bitcoin (ETH), Ethereum (ETH), has also been affected by bearish sentiment. Products offering exposure to ETH suffered $25 million in outflows and MTD outflows totaling $82.3 million.

Funds tied to NFT platform FTX and crypto exchange FTX saw $38 million inflows. However, FTT funds are classified under “other” so it is not clear if this is part a longer trend. The price of FTT has fallen 24.5% in the last 30 days.

Minor inflows of $390,000.00 and $250,000, respectively, were also recorded for Terra (LUNA), and Fantom(FTM) investment products.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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