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A new report by CoinShares showed that short-Bitcoin investment funds recorded $23 million in outflows over the last week. Overall, digital asset investment products saw outflows totaling $54 million over the week, $32 million of which came from Bitcoin funds.

Bitcoin Funds Saw $32M in Outflows Last Week

Short-bitcoin investment products saw the largest weekly record in outflows last week of $23 million, according to CoinShares. Bitcoin funds attracted negative sentiment, recording $32 million in outflows last week.

On a regional basis, the bulk of outflows came from Germany and Canada, with $27 million and $20 million, respectively. Only Sweden attracted some positive sentiment, with just $1.3 million in inflows.

According to CoinShares, volumes in the broader crypto industry are currently halved from the levels seen at the beginning of 2023, while volumes in investment funds are 16% higher than their year-to-date average.

Third Week of Outflows for Digital Asset Funds

In total, digital asset investment funds saw $54 million in outflows last week, marking the third consecutive week of outflows for the asset class. Almost all outflows were registered in Bitcoin and short-bitcoin funds, and some minor outflows in Ethereum-related investment products.

“Investor activity in altcoins was unusually low, seeing minor outflows from Ethereum investment products of US$2.3m. While Solana was the only other altcoin to see any activity with inflows of US$3.4m, the second largest over the last 12 months.”

– CoinShares wrote in the blog.

CoinShares noted that blockchain-related stocks also saw negative investor sentiment last week, recording total outflows of $7.3 million. The figure mark the largest weekly outflows for blockchain equities since the start of the year, likely due to profit taking, CoinShares wrote in the blog.

Over the past seven days, Bitcoin’s price fell by around 1%. The world’s biggest cryptocurrency lost some of its gains from last month, when it breached the $30,000 psychological threshold for the first time since June 2022.

The slight drop comes partly due to the latest interest rate hike by the Federal Reserve (Fed) last week, which brought the rates up to the 5-5.25% range. Many analysts expect it was the last rate increase this year, with US senators and representatives arguing that further tightening could “throw millions of Americans out of work.”

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