Global Crypto Funds Experience Record Outflows of Nearly $1 Billion Last Week

According to CoinShares, crypto investment products faced unprecedented outflows last week, with a staggering $942 million exiting funds globally. This marks a significant shift from the seven-week streak of inflows totaling $12.3 billion.

Various asset managers, including BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, witnessed record outflows totaling $942 million globally. This surpasses the previous record set at the end of January, almost doubling it.

The substantial outflows occurred amidst a 33% decrease in trading volume for crypto investment products, amounting to $28 billion for the week. Additionally, the price correction in underlying cryptocurrencies led to a $10 billion reduction in assets under management for these funds. Nonetheless, the combined AUM remains above previous cycle highs at $88 billion.

Despite over $1 billion in inflows into new spot Bitcoin exchange-traded funds in the U.S., it was insufficient to offset nearly $2 billion in outflows from Grayscale’s converted GBTC fund. The recent price correction prompted hesitancy among investors, resulting in lower inflows into new ETF issuers in the U.S.

The dominance of U.S. spot Bitcoin ETFs drove the majority of net outflows last week, contributing $904 million, while short-bitcoin investment products saw minor outflows of $3.7 million.

Poor sentiment extended beyond U.S.-based funds and Bitcoin, affecting crypto investment products globally. Funds in Sweden, Hong Kong, Switzerland, and Germany experienced outflows, while Brazil and Canada-based funds saw inflows. Ethereum, Solana, and Cardano-based products also suffered outflows, while other altcoin-related funds fared better, registering net inflows.

Bitcoin is currently trading at $66,827, reflecting a 2% decrease over the past week. The broader crypto market also experienced a decline, with the GM30 index falling 10% before partially recovering.

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