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  • Crypto investment products saw outflows of $6.5M last week

    Crypto investment products saw outflows of $6.5M last week

    • About $6.5 million flowed out of funds tracking different cryptocurrencies last week.
    • Bitcoin recorded $13 million in outflows, while Ethereum benefited from XRP-driven sentiment to record $6.6 million in inflows.
    • The minor outflows follow 4 consecutive weeks of inflows.

    CoinShares’ latest report on digital assets investment products suggests the industry saw minor outflows of $6.5 million over the past week. The outflows follow a consecutive four weeks of inflows that saw investors pour $742 million into different crypto investment products.

    James Butterfill, Head of Research at CoinShares noted that while Bitcoin recorded the most outflows, data showed sentiment towards Ethereum investment products looks to have flipped positive.

    Ethereum and XRP record inflows

    As highlighted in a report published on Monday, funds tracking Bitcoin logged $13 million of outflows and short-bitcoin products recorded $5.5 million in outflows – its 13th consecutive week. 

    Meanwhile, Ethereum products witnessed $6.6 million in inflows, with Butterfill noting that the shift in sentiment around ETH has coincided with the recent court ruling in the Ripple Labs versus US Securities and Exchange Commission (SEC).

    US Judge Analisa Torres delivered a partial win for Ripple in its battle with the SEC when she ruled that XRP was not a security as sold on exchanges.

    The price of XRP shot up following the ruling, rising more than 100% to hit highs near the much-coveted $1 level. But while XRP failed to break to the psychological 100 cents mark, it appears investor confidence in the cryptocurrency greatly benefited it.

    “XRP, both prior to, and following the conclusion of the recent SEC lawsuit, has seen inflows totalling US$6.8m over the last 11 weeks representing 8% of AuM. This implies investors are increasingly confident in the outlook for XRP,” Butterfill wrote.

    The positive sentiment was also replicated in Solana, Uniswap and Polygon that registered inflows of $1.1 million, $0.7 million and $0.7 million respectively.

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  • Bitcoin price rose despite $25 million in product outflows

    Bitcoin price rose despite $25 million in product outflows

    • Bitcoin products saw $25 million in outflows last week, according to asset manager CoinShares.
    • There was $3.7 million in short Bitcoin as investor sentiment flipped negative on recent regulatory concerns.
    • But crypto prices still recorded huge moves, with BTC hitting a six-month high above $25,000.

    Bitcoin price hit its highest price level in six months last week, with the flagship cryptocurrency testing bears’ resolve above the $25,300 zone.

    However, digital asset management firm CoinShares says 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 upped their crackdown on multiple industry sectors.

    Digital assets see $32 million in outflows

    As CoinShares Head of Research James Butterfill points out in a weekly funds flow report released on Monday, Bitcoin recorded the largest share of outflows seen in the digital assets investment products last week.

    Per the researcher, total crypto funds outflows totaled $32 million this past week, the largest single week outflows since December last year. But almost $25 million of the outflows were in Bitcoin products, with negative sentiment seeing short Bitcoin investment products account for $3.7 million in inflows.

    Infact, as US Securities and Exchange Commission (SEC) increased its crackdown on stablecoins and staking services among other sectors of the crypto industry, crypto outflows hit $62 million. The market did record significant outflows as Bitcoin led the market in holding prices above key levels.

    According to Butterfill, the mid-week flip in sentiment (with Bitcoin price soaring more than 10%) helped digital assets products register $30 million in inflows. This in turn helped push the total assets under management in exchange-traded products (ETPs) to its highest level since last August. Butterfill noted:

    “The negative sentiment amongst ETP investors was not expressed in the broader market with Bitcoin prices rising by 10% over the week, this price appreciation pushed total assets under management (AuM) to US$30bn, their highest level since August 2022. We believe this is due to ETP investors being less optimistic on recent regulatory pressures in the US relative to the broader market.”

    Crypto assets saw mixed flows

    While Bitcoin recorded over 78% of the outflows, Ethereum products saw $7.2 million in outflows last week. Other top altcoins with large withdrawals included Cosmos ($1.6 million), Polygon ($0.8 million), and Avalanche ($0.5 million).

    Yet, investment products for 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 a second consecutive week of outflows, blockchain equities had a more positive outlook from investors, with $9.6 million in inflows last week. Blockchain equities have now had six consecutive weeks of inflows.

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