Digital asset products saw most outflows last week since March

Digital assets investment products saw $600 million in outflows last week, the most since March, with a more hawkish than expected Federal Reserve prompting investors to scale back risk exposure, data from CoinShares International show.

Overall, Bitcoin products saw $621 million in outflows. Grayscale’s Bitcoin exchange-traded-fund, the cryptocurrency’s second-largest fund, was the biggest loser and saw more than $274 million in outflows, according to a report from the digital asset manager and crypto research firm. Funds run by Fidelity and ARK funds followed Grayscale in losses, seeing nearly $150 million in outflows each.

Bitcoin fell 4.6% in the week ended Sunday, and traded about 1.9% lower at $65,201 on Monday. It has rallied about 55% so far this year.

Alternative cryptocurrencies such as Ether, Lido and XRP saw inflows totaling $21 million. Ether, the world’s second largest cryptocurrency, took in $13 million, riding on the coattails of surprise decision from the US Securities and Exchange Commission to allow Ether ETFs. The week before that, Ether saw inflows of $69 million, the largest amount since March.

But the positive inflows and ETF potential hasn’t led to a higher price for the digital asset. The price of Ether has fallen around 8% since last week and now sits at about $3 500.

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