Bitcoin Funds See Slowing Investment Outflows, Ethereum Outflows Accelerate

cryptonews.com:

Regulated crypto investment products saw outflows of close to USD 100m last week, as capital continued to leave funds backed by both bitcoin (BTC) and ethereum (ETH) in droves. The outflows were partly explained by tax-related selling in the US, while one analyst said the macro landscape for crypto has now improved.

"The outflows represent the second week in what we believe is likely a result of recent profit-taking and a reaction to the more hawkish [Federal Open Market Committee, FOMC] statement," CoinShares said. According to them, the prior week to last week saw outflows primarily from the US, while last week most of the outflows were from Europe (88%) in what might be a delayed reaction to the FOMC statement.

Also, per the analysts, investors look to have sold out of short-bitcoin investment products, following a few weeks of inflows. 

Meanwhile, over the course of last week, funds backed by ETH saw their outflows accelerate to USD 27m, up from USD 15.3m the week before, according to new data from the crypto research and investment firm CoinShares.

On the more positive side, however, BTC-backed funds saw outflows decrease compared to the week before. From seeing outflows of USD 132m two weeks ago, BTC funds last week saw USD 73m leave.

The only crypto fund category that saw inflows last week were multi-asset funds, which had USD 5.3m added to them, CoinShares’ data showed.

So far this year, outflows from BTC-backed funds stand at USD 196m.

The fund provider with the largest outflows last week was ETC Group, which lost USD 75.9m. Meanwhile, Purpose had the largest inflows among the providers tracked with USD 11.7m added.

The outflows from crypto-backed investment funds are interesting given the current macroeconomic