Crypto Funds See $528M Weekly Outflows Amid Market Headwinds

• Crypto funds fell out of favor with investors last week.
• The funds hemorrhaged hundreds of millions.
• Various factors influenced the outflows, including fears of a recession in the U.S.

Global digital asset investment products logged their first outflows in a month, highlighting the sudden shift in investor confidence amid market headwinds.

Investors pulled hundreds of millions from various crypto products in the week of July 28 to August 3, with CoinShares attributing the reverse trend to fears of a looming recession in the U.S., geopolitical tensions, and the broader market liquidation across most asset classes.

Crypto Fund Flows in the Last Week

CoinShares said in its Monday report that crypto funds registered outflows totaling $528 million the previous week, with Bitcoin accounting for the lion’s share.

Funds tied to the largest crypto asset by market cap lost $400 million, their first outflow following a five-week inflow streak. On the flip side, short Bitcoin attracted $1.8 million from investors, marking the first measurable inflow since June.

Outflows from Ethereum investment products totaled $146 million last week, dominated by the $169.5 million investors pulled from U.S.-listed spot Ether ETFs. Per CoinShares, this figure masks the positive inflows of $430 million into Ether ETFs last week, overshadowed by $603 million in net outflows from Grayscale’s ETHE fund.

The ETHE fund has seen a net outflow of over $2 billion since it began trading on July 23, Farside Investors data shows.

Regionally, U.S.-based funds accounted for most of the weekly net outflows, losing $531 million, as Germany and Hong Kong saw outflows totaling $12 million and $27 million, respectively.

Investors from Canada and Switzerland seemed unperturbed by the market downturn and interpreted it as an opportunity to buy. Both countries witnessed a combined inflow of $45 million.  

Stay updated on Robinhood’s move to halt 24-hour trading:
Robinhood Pauses 24-Hour Trading as the Market Goes Haywire

Read how top cryptos performed last weekend following a market bloodbath:
Crypto Market Suffers Bloodbath as Top Coins Tumble