Bitcoin’s Plunge Spooks Crypto Fund Investors: $168 Million Withdrawn

• Last week saw substantial sell-offs in cryptocurrency funds, with a net outflow of $167.6 million.
• The largest outflows were from Bitcoin funds, which experienced a net outflow of $149.4 million, and Ether funds, which saw a net outflow of $16.8 million.
• Despite these outflows, “Short Bitcoin” funds that invest in the cryptocurrency’s decline also saw sales, marking the 18th consecutive week of outflows.

Over the past week, cryptocurrency funds experienced significant sell-offs, with Bitcoin and Ether funds seeing the largest outflows. Interestingly, even funds betting on Bitcoin’s decline weren’t spared from the sell-off.

Week of Withdrawals in Cryptocurrency Funds

The past week was marked by a wave of sell-offs in cryptocurrency funds. A total of $167.6 million was withdrawn, with Bitcoin and Ether funds experiencing the most significant outflows. Bitcoin funds saw a net outflow of $149.4 million, while Ether funds witnessed a net outflow of $16.8 million. This trend indicates a cautious approach by investors towards the two largest cryptocurrencies.

Short Bitcoin Funds Also Hit

Interestingly, even “Short Bitcoin” funds, which profit from a decrease in Bitcoin’s price, were not immune to the sell-off. These funds experienced a net outflow of $4 million, marking the 18th week in a row of net outflows. This suggests that investors are not only pulling back from direct investments in cryptocurrencies but also from derivative investments that bet on their decline.

Country-wise Outflows

When analyzed on a country basis, the largest outflows were from funds based in Germany, Canada, and the United States. German funds experienced a net outflow of $68 million, Canadian funds saw a net outflow of $61.2 million, and US funds witnessed a net outflow of $19.5 million. This indicates a global trend of caution and withdrawal from cryptocurrency investments.

Conclusion

In conclusion, the past week saw significant sell-offs in cryptocurrency funds, with Bitcoin and Ether funds experiencing the largest outflows. Even funds that bet on Bitcoin’s decline were not spared, marking a trend of caution and withdrawal among cryptocurrency investors worldwide.