Cryptocurrency ETFs recorded $454 million in outflows last week as investor sentiment shifted negatively, according to a report by CoinShares. 

The withdrawals nearly erased $1.5 billion in inflows accumulated during the first two days of the year. This reversal coincided with diminishing market expectations for a Federal Reserve interest rate cut in March.

A four-day streak of selling totaled $1.3 billion according to data released by CoinShares. The shift in capital flows followed the release of macroeconomic data that dampened hopes for monetary easing in the first quarter. Total assets under management across all crypto funds stood at $181.9 billion.

The United States accounted for the majority of the outflows. Investors in the U.S. withdrew $569 million from cryptocurrency ETFs during the period. This negative sentiment contrasted with activity in other major markets where inflows continued. Germany recorded $58.9 million in inflows, while Canada added $24.5 million. Switzerland also saw positive movement with $21 million in net deposits.

Bitcoin ETFs experienced the heaviest selling pressure among specific assets. Investment products focused on the largest cryptocurrency saw $405 million in outflows. Short-Bitcoin products also recorded outflows of $9.2 million. The concurrent outflows in both long and short positions presented mixed signals regarding broader market sentiment for the asset.

Ethereum ETFs faced significant withdrawals as well. Funds tracking the second-largest cryptocurrency shed $116 million for the week. Multi-asset investment products also saw declines, recording $21 million in outflows.

ETF providers showed disparate results during the week. Fidelity recorded the largest withdrawals among issuers listed in the report, with $454 million leaving its funds. Grayscale also experienced significant selling, seeing $360 million in outflows.

BlackRock (NYSE: BLK) iShares products defied the broader trend of withdrawals. The issuer attracted $181 million in inflows during the same period. ProFunds Group also registered positive flows of $180 million. Bitwise and 21Shares AG recorded inflows of $47 million and $1 million respectively.

Outflows were also noted across other providers. Volatility Shares saw $74 million in withdrawals. ARK 21Shares recorded $84 million in outflows.

Header image by Arturo Añez via Unsplash.

Cryptocurrency ETFs recorded $454 million in outflows last week as investor sentiment shifted negatively, according to a report by CoinShares. 

The withdrawals nearly erased $1.5 billion in inflows accumulated during the first two days of the year. This reversal coincided with diminishing market expectations for a Federal Reserve interest rate cut in March.

A four-day streak of selling totaled $1.3 billion according to data released by CoinShares. The shift in capital flows followed the release of macroeconomic data that dampened hopes for monetary easing in the first quarter. Total assets under management across all crypto funds stood at $181.9 billion.

The United States accounted for the majority of the outflows. Investors in the U.S. withdrew $569 million from cryptocurrency ETFs during the period. This negative sentiment contrasted with activity in other major markets where inflows continued. Germany recorded $58.9 million in inflows, while Canada added $24.5 million. Switzerland also saw positive movement with $21 million in net deposits.

Bitcoin ETFs experienced the heaviest selling pressure among specific assets. Investment products focused on the largest cryptocurrency saw $405 million in outflows. Short-Bitcoin products also recorded outflows of $9.2 million. The concurrent outflows in both long and short positions presented mixed signals regarding broader market sentiment for the asset.

Ethereum ETFs faced significant withdrawals as well. Funds tracking the second-largest cryptocurrency shed $116 million for the week. Multi-asset investment products also saw declines, recording $21 million in outflows.

ETF providers showed disparate results during the week. Fidelity recorded the largest withdrawals among issuers listed in the report, with $454 million leaving its funds. Grayscale also experienced significant selling, seeing $360 million in outflows.

BlackRock (NYSE: BLK) iShares products defied the broader trend of withdrawals. The issuer attracted $181 million in inflows during the same period. ProFunds Group also registered positive flows of $180 million. Bitwise and 21Shares AG recorded inflows of $47 million and $1 million respectively.

Outflows were also noted across other providers. Volatility Shares saw $74 million in withdrawals. ARK 21Shares recorded $84 million in outflows.

Header image by Arturo Añez via Unsplash.