Bitcoin leads the fall! CoinShares: Cryptocurrency funds see a $223 million outflow for the first time in 15 weeks.

According to the latest data from CoinShares, global crypto asset investment funds recorded an outflow of $223 million last week after 15 consecutive weeks of net inflows. This turnaround was mainly influenced by profit pullbacks, The Federal Reserve (FED) releasing hawkish signals, and U.S. economic data exceeding expectations, reflecting a rise in market risk aversion.

Capital flow changes: A sharp reversal after a strong start

(Source: CoinShares)

At the beginning of last week, crypto investment products performed strongly, attracting about $883 million in net inflows in just a few days. However, as the Federal Open Market Committee (FOMC) meeting showed a hawkish stance and U.S. economic data continued to improve, market sentiment quickly reversed, leading to a massive outflow of funds in the latter half of the week, ultimately resulting in a negative overall weekly fund flow.

CoinShares Research Director James Butterfill pointed out that despite the weak employment data over the weekend being somewhat dovish for The Federal Reserve (FED), the overall risk-off sentiment has not eased, with over $1 billion in funds exiting crypto funds just on Friday alone. He added that net inflows in the past 30 days reached $12.2 billion, accounting for half of the total inflows this year, so this round of slight pullback is within a reasonable range.

Bitcoin dominates capital outflows, Ethereum continues to be strong

From the perspective of product types, Bitcoin-related funds have become the main force in this round of capital outflows, with a net outflow of 404 million USD last week. The outflow of US spot Bitcoin ETFs is particularly severe, with a single-week loss of 642.9 million USD. However, capital inflows from regions such as Hong Kong and Switzerland partially offset the negative impact on the US market.

It is worth noting that although there have been fluctuations in the short term, the cumulative capital inflow for Bitcoin this year has still reached 20 billion USD, indicating that the demand for long-term capital allocation remains strong. Butterfill stated that, given Bitcoin's high sensitivity to changes in monetary policy, this adjustment is not surprising.

At the same time, the Ethereum fund has achieved net inflows for the 15th consecutive week, with a weekly increase of $133 million, setting the longest inflow record since mid-2021. The US spot Ethereum ETF contributed the most, although it faced an outflow of $152.3 million on Friday, it still recorded a positive inflow of $154.3 million for the week, indicating that the market remains optimistic about the outlook for ETH.

Highlights of Shanzhai Coin Fund: Significant capital inflow for XRP, Solana, and Sei

In addition to mainstream coins, some altcoin funds have also performed well. The XRP fund saw a net inflow of $31.2 million last week, while Solana and Sei recorded net inflows of $8.8 million and $5.8 million, respectively, indicating an increased interest among investors in diversified asset allocation.

Regional differentiation is obvious, with the United States leading the outflow, while some regions in Asia and Europe are attracting capital.

From a regional distribution perspective, market sentiment in the United States is bearish, with a net outflow of as much as 383 million USD in a single week, while Germany and Sweden also saw outflows of 35.5 million USD and 33.3 million USD, respectively. In contrast, Hong Kong and Switzerland recorded net inflows of 170.4 million USD and 52.4 million USD, partially alleviating the overall outflow pressure globally.

Conclusion

Under the strong signals from The Federal Reserve (FED), robust economic data, and market profit pullback pressures, global Crypto Assets funds ended a 15-week streak of net inflows, resulting in a net outflow of $22.3 million. Bitcoin funds dominated the capital withdrawal, but Ethereum and some altcoins still showed capital attraction. In the future, macroeconomic trends and regulatory policies will continue to dictate the capital flow in the crypto market, and investors need to closely monitor global market dynamics and flexibly adjust their asset allocation strategies.