$147 Million Withdrawn from Crypto Funds Last Week, Unpredictable Start to October!
Today (October 7), data analysis company CoinShares released a statistical report on the cash flow into Crypto funds last week (September 30 - October 6).
1. Statistics on cash flow into Crypto funds last week (September 30 - October 6)
According to CoinShares, digital asset investment products saw net outflows of $147 million last week (September 30 - October 6) - ending a three-week streak of positive inflows.
Trading volume of ETFs last week increased slightly by 15% to $10 billion, while trading volume on centralized exchanges (CEX) recorded a significant decrease.
James Butterfill (head of research at CoinShares) explained that the reason why Crypto funds suddenly witnessed a strong net withdrawal could be due to stronger than expected macroeconomic data in the United States.
According to Butterfill, this has reduced the possibility that the US Federal Reserve (FED) will cut interest rates by 0.5% at the FOMC meeting in November this year.
By region, the United States led the way in net capital outflows with $209 million last week. Germany, Hong Kong & Sweden also recorded net outflows of $8.3 million, $7.3 million & $2.1 million respectively.
Meanwhile, some other countries such as Canada and Switzerland unexpectedly saw strong inflows, with $43 million and $34.9 million respectively. Others such as Australia and Brazil recorded trickle inflows of less than $2 million.
Bitcoin investment funds were the âmain culpritsâ of negative capital flows last week, recording a net withdrawal of $159 million. On the other hand, Bitcoin short funds recorded an inflow of nearly $3 million.
Ethereum funds saw negative inflows of $28.9 million last week, as selling pressure from Grayscaleâs ETHE fund shows no signs of abating.
Solana funds saw $5.3 million in inflows last week, while most other altcoin funds saw positive inflows trickling below $1 million.
It is worth noting that multi-asset funds recorded a positive inflow of $29 million last week - marking the 16th consecutive week of inflows.
Since June, Multi-asset funds have become a favorite choice for investors as they help diversify their portfolios instead of investing in individual coins.
