The brutal bear market continues, with crypto investment products last week experiencing their biggest outflows in three months, according to a new report.
Digital asset investment firm CoinShares said Monday that investors took out $23 million last week.
Inflows (investors putting money into crypto products) were experienced only in short Bitcoin funds, which bet on the price of the digital asset going down. $9.2 million was put into such funds, the firm said.
The negative sentiment continues from the previous week, when institutional investors bet against crypto in record numbers.
CoinShares said the move by investors to cash out stems from the “fallout from FTX.” Crypto markets have been rattled after FTX—once one of the biggest digital asset exchanges—lost billions of dollars of investors’ cash in a quick and violent crash.
FTX collapsed after it became apparent that it used client money to make investment bets through Alameda Research, a trading firm founded by the exchange’s ex-CEO Sam Bankman-Fried.
Digital asset investment products saw outflows totalling US$23m, with the only noticeable inflows being toward the short-BTC products. The last time we saw this level of outflows was three months ago. pic.twitter.com/jcDcvusA8W