Bitcoin ETFs saw their highest weekly outflows since June 2021


In addition to the Fed’s aggressive tone and the recent price decrease, “it is impossible to establish the specific explanation for this,” CoinShares noted.

Bitcoin (BTC) investment products lost $133 million last week, the highest weekly outflow since June of last year.

According to CoinShares’ weekly Digital Asset Fund Flows report, total withdrawals of $120.1 million were recorded for the week ending on Friday. Even though there were significant withdrawals of Bitcoin, an unexpected influx of $38 million for FTX Token (FTT) goods helped to balance things out. Last week’s $132.7 million withdrawals from BTC funds brought April’s total outflows to $310.8 million.

It was during a negative trend in June 2021 that BTC funds last experienced such large withdrawals in a single week due to widespread FUD, including Tesla suspending BTC payments for its vehicles over environmental concerns and China enforcing its crypto mining ban.

When it comes to the reasons behind the recent resurgence of adverse investment attitude, there doesn’t seem to be any clear evidence, although CoinShares did refer to two possibilities:

Other than the recent price decrease and the aggressive language from the US Federal Reserve, it’s impossible to pin down the exact cause.

Over the last 30 days, BTC’s price has fallen sharply, down 18.2 percent to $37,970 at the time of writing, like many other key assets and stock market indices. Many observers link this to worries about additional declines in the value of BTC due to inflation and impending interest rate rises by the Federal Reserve.

CoinShares observed the total withdrawals of $326.1 million for all digital asset products in the month-to-date (MTD) period, which indicates that institutional investors are taking a more cautious approach to crypto investments.

There was a lot of bearishness at the beginning of this year, although this isn’t quite as bad as the US$467 million outflows. According to CoinShares, withdrawals from the Americas accounted for 41% of the total, while Europe accounted for 59% of the total.

Bearish sentiment has hit Ether (ETH) as well, with outflows totalling $25 million and MTD outflows totalling $82.3 million for products offering exposure to the cryptocurrency.

In contrast, FTX’s FTT, a crypto exchange and NFT platform, experienced $38 million in inflows, but since FTT funds are classified as “other,” it is not obvious whether this is part of a longer trend. It’s also worth noting that the price of FTT has dropped by 24.5% in the previous 30 days. There were also $390,000 and $250,000 inflows for Terra and Fantom investment products.

Also Read: Gucci is the latest high-end retailer to accept crypto payments in-store

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