Digital asset investment products saw their highest-ever weekly outflow last week, with $255 million in net outflows! 😱
This amounts to 1.0% of total assets under management (AuM) fleeing from the space.
Bitcoin dominated outflows, with $243.5 million leaving long-Bitcoin investment products, while Ethereum saw weekly outflows of $11 million.
Altcoin net flows were close to neutral.
Last week's outflows from crypto products wiped out net inflows for the year, now standing at -$82 million since the start of January. 😥
Investors likely dumped their digital asset investments due to concerns about high-profile crypto-linked US bank failures and the ongoing hawkish message from the Fed.
However, those who sold their crypto holdings have missed out on a face-ripping rally over the past two days, with Bitcoin trading up a stunning 24% versus last Friday's lows. 🚀
Investors were also likely fretting about the ongoing hawkish message from the Fed on the need for further interest rate hikes, as epitomized in a speech by Fed chair Jerome Powell earlier in the week.
The failures of high-profile US banks, including Silvergate and SVB Financial, triggered fears amongst investors of weakening fiat-to-crypto on-ramps and also about the collateralization of Circle’s USDC stablecoin, which had some reserves parked at these institutions.
In summary, last week's outflows from crypto products were the largest ever seen, with Bitcoin dominating the outflows.
Investors likely sold their digital assets due to concerns about high-profile crypto-linked US bank failures and the ongoing hawkish message from the Fed.
However, those who sold their holdings missed out on a face-ripping rally over the past two days.