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Story: Crypto Funds Bleed $173 Million Over Four Brutal Weeks

By Jean-Luc Maracon

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Money's fleeing crypto funds fast. Investment products tied to digital assets just lost $173 million over four straight weeks, marking the worst streak since December 2022 when…

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Bitcoin took the biggest hit here, bleeding nearly $120 million as institutional investors backed away from the world's largest cryptocurrency.

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Some analysts think these outflows represent just a tiny slice of total assets under management in crypto funds.

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Grayscale Investments, one of the biggest players in digital asset management, won't comment on the recent outflows.

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Europe's telling a different story. European crypto funds barely saw any outflows, showing how regional differences in regulation and market maturity can split investor sentiment.

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The mood's definitely cautious right now. More on this topic: Coinbase Returns to Super Bowl After.

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James Butterfill from CoinShares thinks the Federal Reserve's interest rate hikes spooked U.S. investors into recalibrating their portfolios.

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Digital Currency Group announced on February 12 they're reassessing current holdings because of market conditions.

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Galaxy Digital's Mike Novogratz reported his crypto fund assets dropped too, matching the broader outflow trend.

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Fidelity Digital Assets isn't budging from its crypto positions despite the outflows. A spokesperson said February 15 that the firm sees current market dynamics as a strategic…

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BlockFi announced February 14 it's exploring new liquidity strategies amid ongoing market adjustments.

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The SEC's still sitting on multiple Bitcoin ETF applications that could flip the script entirely.

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The outflows coincide with broader institutional shifts in digital asset allocation strategies.

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Crypto mining stocks also felt the pressure during this period. Marathon Digital Holdings dropped 12% while Riot Platforms fell 9% in February, reflecting how the selling wave…

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