Bitcoin and Ethereum Experience $546 Million in Weekly Outflows, Reports CoinShares
Last week, the crypto investment sector experienced a setback amidst a wider market decline that saw major global indices retract. According to data released by CoinShares, digital asset investment funds encountered outflows totaling $528 million during the week. The majority of these negative flows were attributed to funds associated with bitcoin and ether.
Bitcoin funds saw a significant outflow of $400 million following a streak of five weeks of inflows. Notably, despite BlackRock’s spot bitcoin ETF witnessing substantial inflows, the overall trend for bitcoin funds was negative. On the other hand, Ethereum-related funds experienced net outflows of $146 million, with a significant portion of this coming from capital exiting Grayscale’s ETHE.
James Butterfill, the head of research at CoinShares, indicated that the shift in investor sentiment could be linked to concerns about a potential recession in the US and the impact of broader market sell-offs across various asset classes. Butterfill highlighted that trading volumes in exchange-traded products (ETPs) reached $14.8 billion last week, representing a lower proportion of the total market at 25%. The correction in prices on Friday led to a reduction of $10 billion in total ETP assets under management.
Market volatility on Monday alone contributed to over $4.7 billion in trading volume for spot bitcoin ETFs. Data from Sosovalue revealed that spot bitcoin ETFs saw outflows of $168 million on that day, while ether spot ETFs experienced inflows of $48.7 million.
As of the latest figures, bitcoin has declined by 16% over the past week, trading at approximately $55,800, while ether has dropped by 25% to around $2,500 during the same period. Despite these declines, both assets showed an increase of more than 6% in the last 24 hours, indicating that investor sentiment may not have completely shifted.
Arkham’s onchain data also demonstrated that institutional investors remained relatively unfazed by the market downturn on Monday. One noteworthy institution that disclosed its participation was Capula Management, Europe’s fourth-largest investment manager, which revealed holdings of nearly $500 million in BlackRock and Fidelity’s spot bitcoin ETFs.
