Crypto funds have seen their biggest weekly outflows since March as investors become more pessimistic about the prospects for a Bitcoin ETF in the US.
According to digital asset investment product provider CoinShares, crypto funds had a total outflow of $168 million last week, surpassing the previous record of $141 million in March, when US regulators launched scrutiny of several crypto exchanges.
Bitcoin was the main focus last week, seeing a total outflow of US$149 million.
While many investors continue to sell their shorts, last week saw an outflow of $4 million, with the last 18-week outs representing 89% of the total under management shorts.
Ethereum also saw an outflow of $ 17 million last week and became the most meaningful token among altcoins. XRP and Litecoin, on the other hand, saw small inflows of $0.5 million and $0.44 million, respectively.
The report also noted the low trading volume in the crypto market, which averaged $1.3 billion a week in August and remained 16% below the yearly average. This reflects the low volatility and lack of direction in the market, the report said.
CoinShares added that the outflows have spread to most countries, indicating that the negativity is broad-based. Germany and Canada, where most of the activities take place, have seen outflows of $68 million and $61 million, respectively, in recent months.
*Not investment advice.