CoinShares data shows that Bitcoin funds saw $453 million in outflows last week as the ProShares short BTC strategy ETF saw $15.3 million in inflows amid the bear market so let’s read more today in our latest Bitcoin news.
The outflows for BTC-specific funds totaled $453 million and wiped off the inflows made over the past six months according to the CoinShares data. The funds measured are investment products that give traditional investors exposure to crypto without having custody of the said crypto. When investors buy a crypto-based fund and it is called inflows and is usually a sign of bullish sentiment. The opposite process when investors rotate out of these funds and call outflows and are often bearish. In terms of assets under management, last week’s outflows were the third biggest on record and represent 1.2% of the entire AUM of the funds that Coinshares tracks, and the worst were outflows of 1.6% recorded in the 2018 bear market.
Apart from BTC, other assets like Ethereum were $10.9 million, short BTC $15.3 million, Tron $0.1 million, Cardano $0.8 million, and DOT $0.2 million reported total inflows of $30 million a week ago and resulted in net outflows that totaled $432 million. Brands like CoinShares Physical $3.7 million and Purpose $490 million reported negative outflows a week ago. ProShares and 21Shares and eTH Group also ended on a positive note last week.
The central banks including the US FED and Bank of Canada implemented rate hikes as a measure to battle rising inflation. The Bank of Canada hiked rates from 1% to 1.5% and the FED made a 0.75% rate hike which often results in higher bond yields which could appear more attractive than crypto funds to most investors. The hikes hit most all markets but mostly crypto markets. It was Canadian investors who seem to have abandoned BTC en masse. Toronto-based Purpose Investments products suffered $490 million in outflows. As for the US, the report indicated that the products in the country saw inflows that totaled $41 million.
The leading crypto continued to drop in the past few days and BTC is down by 2.3% in the past day and traded at $20,752. Ethereum is trading at $1,184 marking a drop of 2.6%.
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