Analysts: Crypto funds record largest weekly net outflow since February

According to The Block, as reported by Odaily, the latest data from CoinShares shows that investment products issued by crypto asset management institutions (including BlackRock, Grayscale, Fidelity, etc.) experienced a net outflow of approximately $2 billion last week, marking the largest single-week withdrawal since February of this year. This also represents the third consecutive week of net outflows, totaling $3.2 billion. With the correction in digital asset prices, the overall assets under management have decreased from $264 billion in early October to $191 billion.

James Butterfill, Head of Research at CoinShares, pointed out that changes in interest rate expectations, coupled with continued selling pressure from large cryptocurrency holding addresses, weighed on market sentiment. This round of withdrawals primarily came from the United States, accounting for 97% and amounting to approximately $1.97 billion; Switzerland and Hong Kong saw outflows of $39.9 million and $12.3 million respectively. In contrast, German investors bucked the trend, increasing their holdings by approximately $13.2 million.

In terms of investment products, Bitcoin investment products saw a weekly outflow of $1.38 billion, marking the third consecutive week with a cumulative outflow of approximately 2% of their total assets under management. Ethereum products recorded an outflow of $689 million, representing about 4% of their assets under management. Solana and XRP also saw slight redemptions.

Butterfill added that despite the overall bearish sentiment, multi-asset products attracted $69 million in funding over the past three weeks, indicating that some investors are inclined to diversify their portfolios during periods of volatility; short-selling Bitcoin products also saw net inflows, reflecting market demand for hedging against further downside. (The Block)