Crypto Funds Record $1.73 Billion Outflow, Marking Largest Weekly Drop Since November 2022

Digital asset investment products experienced a dramatic reversal of fortune last week, registering net outflows totaling $1.73 billion, according to CoinShares data. This figure marks the steepest weekly decline in institutional crypto funds since the market turmoil following the collapse of FTX in November 2022.

The massive retraction is largely attributed to a broad market risk-off movement, triggered by recent Bitcoin price corrections and growing concerns over the U.S. Federal Reserve’s sustained hawkish outlook on interest rates. This environment prompted institutional investors to quickly unwind positions established earlier in the year.

Bitcoin (BTC) products were overwhelmingly responsible for the decline, accounting for approximately 98% of the total weekly outflow. BTC funds shed $1.7 billion, signaling a rapid institutional de-risking. Minor outflows were also observed across Ethereum (ETH) and other alternative assets, although these amounts were negligible compared to Bitcoin’s massive drain.

Despite this significant weekly setback, overall year-to-date inflows for digital asset products remain firmly positive, suggesting that the recent sell-off might be a short-term, volatility-driven event rather than a permanent exodus from the asset class.

Source: Crypto Funds Shed $1.73B Last Week, Largest Figure Since November