A leading digital assets manager says institutional investors continue a weeks-long trend of divesting from cryptocurrencies in the face of economic uncertainty.
According to the latest CoinShares Digital Asset Fund Flows Weekly Report, crypto investment products saw outflows last week totaling $120 million.
“Digital asset investment products saw outflows totaling US$120m, bringing total outflows in this 4-week run to US$339m. This doesn’t reflect the same bearishness seen at the beginning of this year, although it is close to the US$467m outflows witnessed. Regionally, the outflows were fairly evenly split between The Americas comprising 41% and Europe 59%.”
CoinShares says that Bitcoin (BTC) accounted for a significant share of the outflows and witnessed its biggest drop in 11 months.
“Bitcoin saw the majority outflows in what was the largest single week of outflows since June 2021, at US$133m. It is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the US Federal Reserve and the recent price decline.”
Despite dropping by $310.8 million over the previous four weeks, year-to-date BTC has still witnessed net inflows of $120 million.
Second-ranked crypto asset Ethereum also declined by $25 million, and despite only five of 17 weeks signaling net outflows, ETH’s year-to-date outflows sit at $194 million.
Smart contract platform Solana (SOL) was also down $1.5 million on the week but remains positive on the month to the tune of $2.3 million of inflows.
CoinShares notes that one bright spot amid the sea of red this week was FTX Token (FTT), native asset of the popular Bahamas-based cryptocurrency exchange FTX.
“FTX Token… bucked the negative trend with inflows totaling US$38m last week, the largest of all crypto assets we track.”