Key Takeaways
- Bitcoin investment funds saw a record $2.9 billion in outflows.
- U.S. spot Bitcoin ETFs lost $2.61 billion, leading the downturn.
- Despite losses, Bitcoin ETFs saw $94 million in inflows on Friday.
Global Bitcoin investment products suffered record outflows of $2.9 billion last week, according to CoinShares.
The downturn, which extended the sector’s three-week losing streak to $3.8 billion, was driven by multiple factors, including the Bybit hack, a more hawkish Federal Reserve, and profit-taking after a 19-week inflow streak of $29 billion.
CoinShares Head of Research James Butterfill said:
We believe several factors contributed to this trend, including the recent Bybit hack, a more hawkish Federal Reserve, and the preceding 19-week inflow streak.
U.S.-based funds lead outflows
U.S.-based funds accounted for most of the outflows, losing $2.87 billion, while Switzerland and Canada-based products saw $73 million and $16.9 million in respective losses.
However, German funds bucked the trend, gaining $55.3 million.
Signs of recovery
Despite the losses, signs of recovery emerged as U.S. spot Bitcoin ETFs recorded $94 million in inflows on Friday, ending an eight-day outflow streak.
Analyst Valentin Fournier noted that investors saw Bitcoin as undervalued even before Trump’s announcement, which fueled a market rebound.
Outflows by fund type
Bitcoin funds led outflows with $2.59 billion, while Ethereum-based products saw a record $300 million in withdrawals.
Meanwhile, Sui-based funds attracted $15.5 million in inflows, and XRP products gained $5 million, continuing their positive streak.
