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Source: AdobeStock / Yevgen Kotyukh

Bitcoin (BTC) and crypto-backed investment funds saw outflows of USD 423m last week, marking the largest weekly outflows on record “by a wide margin,” data from the digital asset investment firm CoinShares shows.

Per the latest update from CoinShares, the large outflows were solely focused on BTC funds, with USD 453m in capital leaving these funds. Funds backed by other digital assets such as ethereum (ETH) and cardano (ADA) saw inflows for the week.

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The inflows to ETH funds came after relatively large outflows of USD 70m seen the week before. The same week, BTC funds saw inflows of USD 28m.

Source: CoinShares

The vast majority of the outflows from bitcoin funds in the latest report occurred on June 17, but appeared in the data for last week due to “reporting lags,” CoinShares said.

Commenting on the notable outflows, the report said that “almost all inflows year-to-date” in bitcoin funds have now been erased, leaving the total assets under management by bitcoin funds at USD 24.5bn. This is the “lowest point since the beginning of 2021,” the report said.

According to the report, regionally, the outflows were almost solely from Canadian exchanges, and one specific, unnanmed provider. 

“The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and likely responsible for bitcoin’s decline to USD 17,760 that weekend. Stripping out the USD 493m outflows reveals that other providers saw aggregate inflows totaling USD 70m, highlighting highly polarised sentiment amongst digital asset investors,” the authors of the report said.

Also notable about last week’s data is the inflow of USD 15.3m seen in the “Short Bitcoin” category. The inflows are due to the launch of the dubbed the ProShares Short Bitcoin Strategy ETF (BITI), the first short bitcoin exchange-traded fund (ETF) in the US.

The new ETF went live on the NYSE Arca exchange on June 21, but saw a relatively slow start in terms of the trading volume.

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