Crypto Investment Products Face $528 Million Outflow

• Crypto funds saw $528 million in outflows due to recession fears and market volatility.”

• Bitcoin investment products lost $400 million, ending a five-week inflow streak.”

• Ethereum products faced $146 million in outflows, with U.S.-listed spot Ether ETFs seeing significant withdrawals.”

Significant Outflows in Crypto Funds

Global digital asset investment products saw substantial outflows last week, marking the first decline in a month.

Investors withdrew hundreds of millions from various crypto products between July 28 and August 3, as reported by CoinShares. This trend shift is attributed to fears of a looming U.S. recession, geopolitical tensions, and widespread market liquidations across multiple asset classes.

Bitcoin Takes the Biggest Hit

CoinShares’ Monday report highlighted a total outflow of $528 million from crypto funds, with Bitcoin bearing the brunt. Bitcoin-related funds lost $400 million, marking their first outflow after five consecutive weeks of inflows. Interestingly, short Bitcoin products attracted $1.8 million, the first notable inflow since June.

Ethereum Funds Also Affected

Ethereum investment products experienced outflows totaling $146 million. This figure is primarily due to the $169.5 million withdrawn from U.S.-listed spot Ether ETFs. Despite these withdrawals, positive inflows of $430 million into Ether ETFs were recorded, though overshadowed by net outflows of $603 million from Grayscale’s ETHE fund.

Regional Differences in Investment Behavior

The report showed that U.S.-based funds accounted for most of the weekly outflows, losing $531 million. Germany and Hong Kong also saw outflows of $12 million and $27 million, respectively. In contrast, investors from Canada and Switzerland remained undeterred by the market downturn, seeing it as a buying opportunity. These regions recorded a combined inflow of $45 million.