Bitcoin Funds Witness Largest Weekly Outflows Since March: Report
The latest weekly report from CoinShares reveals that crypto investment products, particularly Bitcoin funds, saw major outflows for the third consecutive week. As investors continue to take profit, a total of $107 million in outflows was recorded in the previous week.
Crypto investment products listed in the report are from various exchange-traded product (ETP) providers, including 21Shares, Grayscale Investments, Bitwise, and Proshares. However, it was found that a significant portion of the outflows came from Purpose Investments and ETC Issuance.
From a regional standpoint, CoinShares discovered that the outflows were mostly from Germany and Canada, which recorded $70.8 million and $28.5 million, respectively. Meanwhile, only Australia and the United States saw inflows, with $0.3 million and $0.2 million, respectively.
Bitcoin Funds Record $111 Million In Weekly Outflows
According to CoinShares’ head of research, James Butterfill, Bitcoin (BTC) was primarily responsible for the significant outflows registered by digital asset investment products in week 32 of 2023. The premier cryptocurrency saw total outflows of $111 million, its largest since March.
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It appears that investment in Bitcoin-related funds is slowing down, as institutional investors continue to sell for profit. This latest report represents the third consecutive week in which Bitcoin funds experienced outflows totaling $139 million.
Prior to this recent negative run, more than $742 million went into crypto funds over a four-week period, with Bitcoin receiving a huge chunk of that figure. This positive momentum is believed to have been spurred by Ripple’s partial victory over the United States Securities and Exchange Commission.
CoinShares’ weekly report revealed that outflows into short Bitcoin have stopped for the first time in over three months. While this may suggest that institutional investors are no longer betting against the BTC price, the weekly outflows indicate that they are not banking on its rise either.
For clarity, short products allow investors to profit when the price of a cryptocurrency – in this context, Bitcoin – falls. It typically involves borrowing Bitcoin, immediately selling it on the open market, and then buying it back at a lower price to repay the loan.
As of this writing, Bitcoin trades at $29,164, with a 0.5% price increase in the past day. According to CoinGecko data, the cryptocurrency continues to lead the market with a market cap of roughly $567.3 billion.
“Altcoins Sentiment Seems To Be Improving”
While institutional investors continue to take profit from various Bitcoin-related funds, the signs seem positive for most altcoin investment products. According to CoinShares, altcoins (except Ethereum) recorded $3 million in outflows in week 31 of 2023.
This trend appears to be gaining momentum, as Solana (SOL) particularly saw a substantial increase in buying pressure from institutions in Europe and the United States in week 32 of 2023. The cryptocurrency registered $9.5 million in weekly inflows, its highest figure since March 2020.
Ripple (XRP) and Litecoin (LTC) also saw weekly inflows, recording $0.5 million and $0.46 million, respectively. Uniswap and Cardano, on the other hand, witnessed outflows of $0.8 million and $0.3 million, respectively.
Read more: https://www.newsbtc.com/news/bitcoin/bitcoin-funds-witness-largest-weekly-outflows-since-march/
Text source: NewsBTC
