Bitcoin investment products saw $133m outflows in the week ended 3 May

Crypto funds saw net outflows for the fourth consecutive week, losing $120m this week and bringing total outflows to $339m, according to the CoinShares weekly report.

A stock photo featuring a businessman holding a red down arrow

“It is difficult to ascertain the precise reason for this other than the hawkish rhetoric from the US Federal Reserve and the recent price decline,” CoinShares experts wrote, speaking of Bitcoin outflows.

Bitcoin saw the largest week of outflows since June 2021 at $133m, while FTT, the utility token of FTX exchange, recorded $38m inflows, standing out against the negative trend. Bitcoin’s closest competitor Ethereum saw $25m in outflows. Out of the 17 weeks this year, only five have seen outflows.

Most large altcoins saw minor outflows, except for Terra and Fantom, which recorded minor inflows of $0.39m and $0.25m respectively. This time, blockchain equities didn’t escape the negative sentiment with outflows totaling US$27m last week, only the third week to see outflows this year.

CoinShares chart featuring weekly crypto asset flows.
Source: CoinShares

Assessing the current market situation, CoinShares expert noted that the dip still doesn’t reflect the bearish sentiment seen at the beginning of this year. Back then, investors withdraw $207m from crypto funds following the Federal Reserve’s concerns about rising inflation. “Regionally, the outflows were fairly evenly split between The Americas comprising 41% and Europe 59%,” the report states.