Negative sentiment pervaded digital asset markets after SBF’s FTX exchange collapsed and spread to other firms, with crypto funds seeing their biggest weekly outflows in three months.
Outflows from crypto investment products totaled $23 million, a 12-week high and a reversal of two straight weeks of inflows, according to a Monday report from CoinShares.
In the weeks following the FTX crash, investors piled into shares of digital asset funds as cryptocurrency prices plummeted, but that trend appears to have reversed as prices stabilized last week.
The overall figure for outflows is more bearish than it appears, as about $9.2 million this week has flowed into funds shorting Bitcoin, or those aiming to profit from further falls in the biggest cryptocurrency’s price. The outflows are still small compared with the roughly $200 million in redemptions that followed the bankruptcy of crypto lender Celsius earlier this year.
Outflows from Bitcoin funds totaled $10 million. Even with a 65% year-to-date price drop, Bitcoin still has a net inflow of $322 million in 2022.
