- According to asset manager CoinShares, bitcoin products saw outflows of $25 million last week.
- There was $3.7 million in short bitcoin as investor sentiment turned negative on recent regulatory concerns.
- But crypto prices still registered big moves, with BTC rising above $25,000 to a six-month high.
bitcoin price Last week saw its highest price level in six months, with the key cryptocurrency testing the resolve of the bears above the $25,300 area.
However, digital asset management firm CoinShares They say Despite reaching a new year-to-date high, the flagship cryptocurrency still bore the brunt of the negative sentiment that pierced the market as US regulators stepped up their crackdown on several industry sectors.
Digital assets see $32 million outflow
As James Butterfill, head of research at CoinShares, explains in the weekly Money Flow reports Issued on Monday, bitcoin recorded the largest share of outflows seen in digital asset investment products in the past week.
According to the researcher, total crypto fund outflows totaled $32 million last week, the largest single week since December last year. But outflows of nearly $25 million were into bitcoin products, with outflows of $3.7 million from smaller bitcoin investment products with negative sentiment.
Indeed, the US Securities and Exchange Commission (SEC) increased its Crackdown on Stablecoins and staking services in other areas of the crypto industry, crypto outflows reached $62 million. The market registered significant outflows as bitcoin led the market in holding the price above key levels.
According to Butterfill, the mid-week volatility (with bitcoin rising more than 10%) helped digital asset products register inflows of $30 million. This in turn helped push total assets under management in exchange-traded products (ETPs) to their highest level since last August. Butterfill noted:
,Negative sentiment among ETP investors was not expressed in the broader market, with bitcoin prices rising 10% during the week, this price appreciation pushed total assets under management (AuM) to US$30bn, which This is their highest level since August 2022. We believe in this. ETP investors are less optimistic on recent regulatory pressures in the US relative to the broader market,
Mixed inflows seen in crypto assets
While Bitcoin recorded outflows of over 78%, Ethereum products saw outflows of $7.2 million last week. Other top altcoins with large withdrawals include Cosmos ($1.6M), Polygon ($0.8M), and Avalanche ($0.5M).
Nevertheless, investment products from Aave, Binance, Fantom, XRP and Decentraland saw inflows of between $0.36 million and $0.26 million, CoinShares highlighted in its report.
Elsewhere, while crypto assets experienced outflows for the second week in a row, blockchain equities had a more positive outlook from investors, with $9.6 million inflows last week. It has now been six consecutive weeks of inflows into blockchain equities.