Bitcoin and Crypto Investment Products See Outflows for Second Consecutive Week
In the summer of this year, Bitcoin (BTC) and crypto investment products experienced a significant influx for four consecutive weeks. This surge began after Blackrock, the largest asset manager, filed an application for the first spot bitcoin exchange-traded fund (ETF) in the United States. This move instilled confidence in institutional investors, prompting them to reinvest in bitcoin funds. However, this trend appears to have come to an end as crypto investment products witnessed a net outflow for the second week in a row.
Bitcoin and Crypto Funds Shrink Again
According to Jasmes Butterfill of CoinShares in a weekly research report, investors withdrew a net amount of $20.9 million from crypto investment funds last week. This outflow marks the largest since early June when the US regulators sued Binance and Coinbase. Despite this, the outflow represents only a fraction of the total investment this year, with a net inflow of $472 million for the funds year-to-date.
Altcoins Remain Popular
In the meantime, altcoins were much more popular, with most altcoins experiencing no outflows. Ethereum (ETH) funds saw a total loss of $1.9 million. However, the week was not particularly favorable for other tokens either. Although Litecoin (LTC) funds were very popular a few weeks ago, they only grew by $0.4 million last week. On the other hand, solana (SOL) and cardano (ADA) saw significant growth with $0.6 million each. ETFs focusing on ripple (XRP) witnessed an inflow of $0.5 million, and funds with various cryptocurrencies grew by a total of $0.9 million. It is noteworthy that some of these coins are under scrutiny by the US Securities and Exchange Commission (SEC), which argues that they have been sold as unregistered securities.
The recent net outflows from Bitcoin and crypto investment products after a streak of inflows reflect the changing sentiments of investors. While altcoins continue to show strength, Bitcoin funds experienced the majority of the outflows. It remains to be seen how these trends will evolve in the coming weeks, especially considering the ongoing regulatory scrutiny. Overall, the cryptocurrency market continues to be dynamic and volatile, presenting both opportunities and challenges for investors.