CoinShares: Capital Outflow from Crypto-based Funds Reaches $23M

According to CoinShares, capital outflows from funds focused on digital currencies amounted to $23 million last week.

According to the experts of the firm, the withdrawal of funds was the largest in the last 12 weeks. Institutional investors prefer to hedge risks and redistribute portfolios against cryptocurrencies.

The change in tactics was a direct result of the collapse of FTX and the subsequent turbulence in the crypto market. After a two-week series of institutional entry into the crypto sphere, capital outflow resumed.

According to CoinShares, in annual terms, the influx of investments in crypto funds amounted to $322 million. During the same time, Bitcoin lost 65% of its value.

According to the head of research at CoinShares:

“Negative sentiments dominated in the USA, Canada and Sweden, where capital outflow from long-term instruments was predominantly observed. In parallel, investors switched to short-term products.”