- According to CoinShares, a total of $455 million has been withdrawn from crypto funds over the past nine weeks.
- Bitcoin investment products accounted for 85% of outflows, with outflows of $45 million last week alone.
- Last week was the fifth consecutive week of withdrawals from crypto funds.
Assets managed by crypto-focused funds are declining.
Average daily fund flows, as a percentage of total assets under management, have been on a gradual decline since 2021, and this trend has only continued in the latter half of 2023. Illustrating that point, a Monday CoinShares report reviewed by Insider showed that crypto fund outflows reached $455 million over the past nine weeks, with Bitcoin inflows accounting for 85% of that amount.
In the last week alone, Bitcoin outflows were close to $45 million. Meanwhile, Ethereum saw outflows totaling $4.8 million in the same period.
The second week of September was the fifth consecutive week of net outflows and the eighth of the last nine.
Year-to-date net inflows fell to $51 million as of September 15, according to CoinShares data.
Investors are pulling money from digital asset funds despite a recent legal victory for the industry, which could lay the groundwork for a long-awaited spot ETF. Bitcoin has gained about 2.6% in the past month on the back of Grayscale Investments’ court victory against the Securities and Exchange Commission.
The crypto firm had sued the SEC in 2022 after the agency rejected a bid to launch a Bitcoin exchange-traded fund, and in August the District of Columbia Court of Appeals ruled against regulators. The decision increases hopes for other companies to gain approval for a Bitcoin ETF, which observers say will lead to new gains in Bitcoin’s price. Investment giants BlackRock and Fidelity are among the asset managers filing with the SEC for a spot bitcoin ETF.
Grayscale said in a statement that the case “marks an important step forward for US investors, the Bitcoin ecosystem, and all those advocating for Bitcoin exposure through the added protection of ETF wrappers.”