Hawkish Fed Stand Led to $620 Million Outflows from Bitcoin Last Week

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.

✓ Share:

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.