Last week saw outflows in digital asset funds exceeding $102 million, with Bitcoin accounting $57 million. According to a coinShares report, global outflows of digital assets totalled $102million last week as bears continued their hold on the cryptocurrency market.
Bitcoin last week’s outflows were $57 million. This brings the total month-to-date outflows up to $91 million. Ethereum saw outflows of $41 million last Wednesday.
Ethereum is the most-hit asset with outflows in excess of $386.5 million annually. Bitcoin is still strong with an annual inflow of nearly $450.8 million.
After back-to-back weeks inflows, last week was the first week of digital asset fund outflows.
An investment vehicle that provides exposure to digital assets to traditional investors without the need to own them, a digital asset fund.
As rate increases loom, funds shift
CoinShares said that the flow of funds was due to the “increasinglyhawkish rhetoric” coming out from the U.S. Federal Reserve. This week, the Wall Street Journal reported that the Fed is considering a rate hike to help control rising inflation rates.
At $98 million, America accounted for most outflows, while Europe received $2 million. This indicates that the American market is experiencing increasing instability.
Multi-asset funds also experienced outflows last week of $4.7 Million, bringing the total monthly outflows to $3.6million.
Last week, 3iQ (-72.1 millions) and Purpose (43.4 million) both reported negative outflows. Last week was positive for ProShares (24.2 millions), Grayscale (0.33 million) and 21Shares (4.55 million).
The total assets under management (AUM), have dropped to $1.9billion, which is 54% less than their peak in November 2021.
In recent days, the top cryptocurrencies continue to slide. Bitcoin has fallen 2.2% over the past day, trading at $22,400. According to CoinMarketCap, Ethereum trades at $1,210. This is an increase of around 1.6% in the last 24 hours.
