Crypto Funds See $305M Outflows, Institutions Bearish On BTC, ETH?

Crypto funds witnessed substantial outflows, amounting to approximately $305 million over the past week. This decline is primarily due to negative investor sentiment across various cryptocurrencies, with Bitcoin (BTC) and Ethereum (ETH) experiencing the most outflows.

Crypto Funds See $305M Outflows

According to the latest CoinShares report, crypto funds saw significant capital withdrawals last week, with total outflows hitting $305 million. This movement indicates a broader trend of negative sentiment permeating the digital asset space. 

The report highlights that these outflows were predominantly from crypto funds based in the United States, which saw $318 million withdrawn. Conversely, smaller markets like Switzerland and Canada recorded minor inflows totaling $5.5 million and $13 million, respectively.

Most of these outflows were centered around Bitcoin, which accounted for $319 million. This substantial decline in investments coincides with economic data suggesting a reduced likelihood of interest rate cuts by the Federal Reserve.

Ethereum and Other Altcoins Also Hit

Ethereum, the second-largest cryptocurrency by market capitalization, also felt the impact, with outflows totaling $5.7 million. The trading volumes for Ethereum remained stagnant, reaching only 15% of the levels seen during its U.S. ETF launch week. This suggests a cooling interest among traders and investors, coinciding with an overall decrease in market activity.

Other cryptocurrencies like Solana recorded inflows, which points to selective investor interest in alternative assets. However, the focus remains on major players like Bitcoin and Ethereum, which dominate market sentiment and investor strategies.

In contrast to the downtrend in crypto funds, blockchain-specific equities saw increased investor interest. Investments into Bitcoin miner-specific products led to $11 million in inflows.

Moreover, Bitcoin miner revenue in August plummeted to a one-year low, totaling $827.56 million, a 57% drop from the March 2024 peak. This downturn coincides with reduced mining output and escalating operational challenges post-halving.

At press time, BTC price was $58,411.70, marking a 7-day decrease of 8.48%. The 24-hour trading volume surged by 79.92% to $28.77 billion. Despite the week’s sharp decline, the current market capitalization remains at $1.15 trillion, reflecting a slight increase of 0.72%.

In addition, ETH price was $2,519.46, also experiencing an 8.02% decline over the last seven days.