The ProShares Short #Bitcoin Strategy #ETF also saw $15.3 million in inflows amid the ongoing #crypto bear market.
Bitcoin is the largest crypto asset by market cap. Image: #Shutterstock
Outflows for #Bitcoin-specific funds totaled $453 million, wiping off all the inflows made over the past six months, according to a #CoinShares report.
The #funds measured are investment products that give traditional investors exposure to crypto without having to also custody of said crypto themselves.
When investors buy a #crypto-based fund, it is called inflows and is usually a #bullish sign. The opposite process, when investors rotate out of said funds, is called outflows and is often #bearish.
In terms of assets under management (#AUM), last week's outflows were the third-largest on record, representing 1.2% of the entire AUM of all funds that #CoinShares tracks. The worst was outflows of 1.6% recorded during the 2018 bear market.
However, last week’s outflows’s the largest in dollar value terms.
Apart from #Bitcoin, other assets including #Ethereum ($10.9 million), Short Bitcoin ($15.3 million), #Cardano ($0.8 million), #Tron ($0.1 million), #Polkadot ($0.2 million) and Other Assets ($2.9 million) reported total inflows of $30 million last week, resulting in net outflows totaling $423 million.
Brands like #CoinShare Physical ($3.7 million) and #Purpose ($490.7 million) reported negative outflows last week. Elsewhere, #ProShares $(42.1 million), 21Shares ($8.5 million), and #ETC Group ($13 million) ended up on the positive side last week.
What’s driving #Bitcoin outflows?
Recently, central banks including the U.S. Federal Reserve and the Bank of Canada have implemented rate hikes as a measure to combat rising #inflation.
The Bank of Canada hiked rates from 1% to 1.5% earlier this month. The Fed also made a 0.75% rate hike from 1% to 1.75%.
Rate hikes often result in higher bond yields which may appear more attractive than crypto funds to many investors.
These hikes have hit most all markets, including #crypto, quite hard. But it was #Canadian investors who appear to have abandoned #Bitcoin en masse. According to the #CoinShares report, Toronto-based Purpose Investments’ crypto products suffered a whopping $490.7 million in #outflows.
As for the United States, the report indicates that products within the country saw inflows totaling $41 million.
The leading #cryptocurrencies have continued to slip in recent days. #Bitcoin is down 2.3% in the last day and is trading hands at around $20,752.
#Ethereum is trading at around $1,184, down 2.6% over the past 24 hours, according to data from #CoinMarketCap.