Hawkish Fed Stand Led to $620 Million Outflows from Bitcoin Last Week
Highlights
- CoinShares' latest report highlights a total outflow of $600 million from digital asset investment products last week.
- Bitcoin ETFs in the US saw substantial outflows, with Grayscale's GBTC ETF recording the largest at $274.3 million.
- Bitcoin led global investment product outflows with $621 million, amidst a bearish market sentiment.
The latest report from CoinShares shows that the digital asset investment products experienced outflows totaling $600 million during the last week. This was the outcome of the more hawkish-than-expected FOMC meeting.
Bitcoin ETF Outflow Skyrocketed Last Week
Outflows from the US spot Bitcoin ETFs contributed the most to a majority of the outflows last week. Grayscale’s GBTC ETF saw the largest outflows, with $274.3 million leaving the higher-fee fund. This was followed by Ark Invest’s ARKB and Fidelity’s FBTC, which experienced net outflows of $149.7 million and $146.3 million, respectively.
On the other hand, BlackRock’s IBIT was the only spot Bitcoin ETF registered net inflows last week, recording inflows of $41.6 million last week. As a result, the total net inflows in spot Bitcoin ETFs since inception dropped to $15.1 billion.
Before the last week, the spot Bitcoin ETFs recorded 19 consecutive days of heavy inflows bringing in more than $4 billion during this period. However, this streak of inflows ended last Monday, when the ETFs recorded $64.9 million in net outflows. In the three days in and around the FOMC meeting, the spot Bitcoin ETFs saw outflows to the tune of $200 million per day.
BTC Led the Total Outflows From Global Investment Products
Outflows totaling $621 million were exclusively directed towards Bitcoin, reflecting prevailing bearish sentiment. Additionally, there were inflows of $1.8 million into short Bitcoin positions. As a result, the Bitcoin price ended 7% negative during the last week.
“These outflows and recent price sell-off saw total assets under management (AuM) fall from above US$100bn to US$94bn over the week,” wrote James Butterfill in his CoinShares report.
Also, the trading volumes for the last week dropped to US$11bn, in comparison to the average $22 billion of weekly trading volume this year. However, this is still well above the $2 billion a week registered last year.
In terms of regional trends, the majority of outflows amounting to $565 million were observed in the US. However, negative sentiment was not limited to the US alone, as Canada, Switzerland, and Sweden also experienced outflows of $15 million, $24 million, and $15 million, respectively. In contrast, Germany saw inflows of $17 million, marking an exception to the overall trend of outflows.
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