According to the latest edition of CoinShares' weekly Digital Asset Fund Flow report, total overall digital asset cash flow for the week ended April 29 totaled $120.1 million, with large Bitcoin cash flows offset by an unexpected $38 million for FTX Token (FTT) products. Cash flow of $132.7 million from BTC funds last week, bringing April's monthly flow to $310.8 million.
The last time BTC funds saw this level of flow in a week was in a sharp bearish trend in June 2021 largely due to FUD in news including Tesla's suspension of BTC payments to its cars because of environmental concerns and china's deployment of cryptocurrency mining bans.
CoinShares noted in the report that there does not appear to be a strong indicator of why similarly declining investment sentiment resurfaced last month, but pointed to a number of potential factors:
"It's hard to pinpoint the exact reason for this withdrawal beyond the bellicose rhetoric from the U.S. Federal Reserve and the recent price drop."
Like many other leading assets and various stock market indices, the price of BTC has suffered significantly over the past 30 days, falling about 18.2% to $37,970 at the moment. Many attribute this to concerns that Inflation and the Federal Reserve's upcoming interest rate hike will cause btc prices to rise further.
At a broader perspective, the overall monthly flow (MTD) for all digital asset products tracked by CoinShares totaled $326.1 million, indicating that institutional investors have sought to take wide-ranging risks with cryptocurrency investments.
"This does not reflect the same price drop seen earlier this year, although it is close to the $467 million inflows witnessed. In the region, outflows are fairly evenly distributed between the Americas at 41% and Europe by 59%."
Bitcoin's closest competitor for the top spot in the cryptocurrency, Ethereum (ETH) has also suffered from the recent price drop, with products offering exposure to ETH subject to $25 million in outflows and MTD flows of $82.3 million.
In the opposite shade, funds associated with the cryptocurrency exchange and FTX's NFT FTT platform have noticed cash flow of $38 million, but since FTT funds are classified under the "other" category, it is unclear whether this is part of a long-term trend. Notably, ftt prices have also fallen by 24.5% in the past 30 days.
Terra (LUNA) and Fantom (FTM) investment products also saw small capital inflows of $390,000 and $250,000 each.
