Short-Bitcoin funds saw $23 million in net outflows last week
A new report from CoinShares showed that short-Bitcoin investment funds recorded $23 million in outflows in the past week. Overall, digital asset investment products saw outflows totaling $54 million during the week, of which $32 million came from Bitcoin funds.
Bitcoin Funds saw $32M in outflows last week
Short-bitcoin investment products saw the biggest weekly record in outflows last week at $23 million, according to CoinShares. Bitcoin funds attracted negative sentiment, recording $32 million in outflows last week.
On a regional basis, the bulk of outflows came from Germany and Canada, with $27 million and $20 million respectively. Only Sweden attracted some positive sentiment, with just $1.3 million inflows.
According to CoinShares, volumes in the broader crypto industry are currently halved from levels seen at the start of 2023, while volumes in mutual funds are 16% higher than the year-to-date average.
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Third week of outflows for digital asset funds
In total, digital asset mutual funds saw $54 million in outflows last week, marking the third consecutive week of outflows for the asset class. Almost all outflows were recorded in Bitcoin and short-bitcoin funds, and some smaller outflows in Ethereum-related investment products.
“Investor activity in altcoins was unusually low, seeing small outflows from Ethereum investment products of $2.3 million. While Solana was the only other altcoin to see any activity with inflows of $3.4 million, the second largest in the past 12 months .”
– CoinShares wrote in the blog.
CoinShares noted that blockchain-related stocks also saw negative investor sentiment last week, recording total outflows of $7.3 million. The number marks the biggest weekly outflow for blockchain stocks since the start of the year, likely due to profit taking, CoinShares wrote in the blog.
Over the past seven days, Bitcoin’s price has fallen by around 1%. The world’s largest cryptocurrency lost some of its gains from last month, as it broke the psychological threshold of $30,000 for the first time since June 2022.
The small drop is partly due to the latest rate hike by the Federal Reserve (FED) last week, which brought rates up to the 5-5.25% range. Many analysts expect it to be the last rate hike this year, with US senators and representatives arguing that further tightening could “throw millions of Americans out of work.”
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Do you think Bitcoin and other digital asset investment products will attract more positive sentiment in the coming months? Let us know in the comments below.
About the author
Tim Fries is the co-founder of The Tokenist. He has a B. Sc. in mechanical engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate in the investment team at RW Baird’s US Private Equity division and is also a co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
