Digital asset funds including bitcoin and Ethereum futures are suffering outflows caused by surprisingly resilient macroeconomic data emerging from the US, according to CoinShares’ latest weekly fund flows report.
Total outflows across the major futures funds, including CoinShares, 21Shares and 3iQ, totalled US$1.9mln (£1.6mln) in the past week, although Short Bitcoin inflows of US$9.9mln should also be taken into account.
Bitcoin longs saw outflows of US$11.7mln, while Ethereum longs saw outflows of US$200,000.
Source: CoinShares
The 2023 crypto rally has been stifled recently in response to persistent hawkish sentiment emerging from the Federal Reserve, with a continuation of interest rate hikes on the cards, leading to lower risk appetite among investors.
Employment data has remained especially strong, tempering expectations that the disinflation process is underway.
US-based investors contributed to most of the outflows, likely due to the intense regulatory crackdown on crypto assets by the Securities and Exchange Commission which has seen Kraken cop a US$30mln fine and Binance get issued a cease order on its BUSD stablecoin.
A total of US$29.8bn in digital assets is currently under management across all digital asset funds.