Bitcoin Funds Face Biggest Outflow Since June Last Year

The outflow of institutional capital from crypto funds has been observed over the past few months.

According to a report from CoinShares, last week financial companies withdrew the largest amount of funds from Bitcoin funds since June 2021.

BTC-based products lost $133 million. A week earlier, institutional funds withdrew $132.7 million from Bitcoin funds. In monthly terms, the outflow amounted to $310.8 million.

Such a massive exit of capital from the cryptosphere is reminiscent of the panic sales of May-June last year against the backdrop of Tesla’s refusal to accept Bitcoin and repressions against miners in China.

CoinShares believes that institutional behavior is one of the factors fueling the bear market. The readiness of the US Federal Reserve to tighten monetary policy, as well as rising demand for gold, led to the exit of large capital from risky assets, including digital currencies.