Bitcoin and crypto funds see biggest ever outflow of $255 million

Crypto investment products have recently experienced a declining trend in interest. Last week, however, these types of funds saw the largest ever outflow of a whopping $255 million, Coin Shares reports in its weekly report.

Huge outflow after fall SVB

Crypto funds have already seen significant outflows recently, a sign of the reticence among institutional investors during this uncertain macroeconomic situation. Last week’s outflow, however, was probably the result of the banking crisis. The fall of Silvergate Bank and Silicon Valley Bank has caused a lot of unrest among crypto investors.

According to Coin Shares data, crypto investment products lost 1% of their assets. Bitcoin investment products in particular had a rough time in the week leading up to March 12. Of the $255 million, $244 million flowed out of bitcoin funds, wiping out all of the 2023 gains.

Not only bitcoin, also ethereum and other crypto

In addition to bitcoin (BTC), ethereum (ETH) and so-called multi-asset funds also saw a significant outflow. Despite this decline in interest in investment products, there have been flows of money into Bitcoin short positions. Last week, crypto investors were further shocked by the announcement of the closure of Silvergate Bank and the sudden closure of Silicon Valley Bank.

Prices also took a big dip last week, but have since recovered strongly. We may also see this trend reflected in Coin Shares’ upcoming investment products report.

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These banks want to stay in crypto

The crypto industry has recently lost three major banking partners: Silicon Valley Bank, Signature Bank and Silvergate Bank. Fortunately, there are major banks that are still willing to serve crypto customers and cooperate with crypto companies. These are big names such as Santander, HSBC, Deutsche Bank, BankProv, Bridge Bank, Mercury, Multis and Series Financial. While the shares of the banks took heavy blows over the past few days, the prices of many crypto coins rose sharply.

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