Crypto investment funds took a hit last week amid a broader market sell-off 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 at a total $546 million in outflows.
Bitcoin funds saw total outflows of $400 million after five weeks of inflows, despite BlackRock’s spot bitcoin ETF recording a significant inflows. While 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],” Butterfill said.
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.
Onchain data from Arkham shows that institutional investors were not as fazed by Monday’s market downturn. Europe’s fourth-largest hedge fund Capula Management also recently disclosed it held close to $500 million worth of BlackRock and Fidelity’s spot bitcoin ETFs.
