CoinShares Report: Cryptocurrency Funds Accelerate Outflows, Bitcoin Has Evaporated $1.2 Billion in Two Weeks
The cryptocurrency market is experiencing a noticeable outflow of funds. According to CoinShares' latest report, last week saw a net outflow of $584 million from global digital asset investment products. Among them, the Bitcoin spot ETF has seen large-scale fund withdrawals for the second consecutive week, with a total outflow of nearly $1.2 billion over the two weeks.
The report also noted that the trading volume of global cryptocurrency ETPs has plummeted to $6.9 billion, marking the lowest level since the Bitcoin spot ETF was launched in January.
This trend reflects investors' cautious attitude amid increasing macroeconomic uncertainty, particularly concerns deepening over the direction of the Federal Reserve's interest rate policy.
Regionally, the U.S. market has become a hard-hit area, with a net outflow of $475 million last week alone, while Canada also saw a net outflow of $109 million. However, Switzerland and Brazil bucked the trend, attracting net inflows of $3.89 million and $850,000, respectively. This regional disparity may suggest differing judgments among investors in various markets regarding risk assets.
In terms of cryptocurrencies, Bitcoin remains the primary target for outflows, with a single week outflow of $630 million. Notably, although there was a slight outflow of $1.2 million from Bitcoin shorts, market sentiment has not shifted towards significantly large bearish bets.
Ethereum also reflected the overall risk-averse sentiment of the market with a net outflow of $58 million. Amidst the gloom, some altcoins like Solana, Litecoin, and XRP have unexpectedly attracted funds, achieving net inflows of $2.7 million, $1.3 million, and $700,000, respectively, indicating that some altcoin investors are seeking buying opportunities in oversold conditions.
Meanwhile, multi-asset investment products unexpectedly gained a net inflow of $98 million, which may indicate that institutional investors are responding to market volatility through diversified portfolios.
CoinShares research director James Butterfill directly associates this phenomenon with changes in expectations regarding Federal Reserve policy. As market expectations for a rate cut in June continue to cool, risk assets are generally under pressure.
In the current environment, every action taken by investors is conveying different predictions for the future market, and the next direction of the market may very well depend on the Federal Reserve's next move.
