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Bitcoin sees $33 million in outflows after 11-week streak of inflows to crypto funds ends

Bitcoin sees $33 million in outflows after 11-week streak of inflows to crypto funds ends

The BlockThe Block2023/12/18 10:37
By:James Hunt

Digital asset investment products recorded their first net outflows in 11 weeks — led by Bitcoin.Solana, Cardano and XRP bucked the trend.

Bitcoin sees $33 million in outflows after 11-week streak of inflows to crypto funds ends image 0

Crypto funds at asset managers such as CoinShares, Bitwise, Grayscale, ProShares and 21Shares ended an 11-week run of inflows last week, registering net outflows of $16 million, according to CoinShares’ latest report .

Bitcoin BTC -2.99% -based funds dominated, registering $32.8 million in outflows last week, with short Bitcoin investment products also witnessing $0.3 million in outflows. However, trading activity remained above average — totaling $3.6 billion last week compared to the $1.6 billion yearly average.

The outflows coincide with a decline in the price of Bitcoin over the past week, falling around 5% to end an eight-week streak of consecutive weekly gains. Bitcoin currently trades at 40,925, according to The Block’s price data.

BTC/USD price chart. Image: The Block/TradingView .

Mixed regional flows suggested the turnaround was more about profit-taking than a shift in sentiment toward the asset class, CoinShares Head of Research James Butterfill said. The net flows were mainly driven by the U.S. and German markets, which witnessed $18.3 million and $9.7 million in outflows, respectively. Conversely, Switzerland registered inflows of $9.1 million, and Canada $6.9 million.

Weekly crypto asset flows. Image: CoinShares .

Ether and Avalanche also witnessed outflows — while Solana, Cardano and XRP bucked the trend

Ether and Avalanche AVAX -11.28% -based investment products also witnessed outflows, with $4.3 million and $1 million exiting the funds, respectively.

Solana SOL -7.31% , Cardano and XRP products were the primary beneficiaries, Butterfill said, bucking the trend by registering $10.6 million, $3 million and $2.7 million worth of inflows, respectively. Additionally, Chainlink-based funds witnessed inflows of $2 million.

Blockchain equities also experienced more positive sentiment last week, with inflows totaling $122 million, adding to a nine-week streak of $294 million — the largest run to date.


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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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