The latest weekly report from CoinShares reveals significant outflows in crypto investment products
The report shows that Bitcoin funds and other crypto investment products experienced major outflows for the third consecutive week. Investors are taking profit, resulting in $107 million in outflows recorded in the previous week. The majority of outflows came from Purpose Investments and ETC Issuance. Germany and Canada saw the highest outflows, while Australia and the United States saw small inflows.
Bitcoin funds saw the largest outflows, reaching $111 million
According to James Butterfill, CoinShares’ head of research, Bitcoin was primarily responsible for the significant outflows in digital asset investment products. Bitcoin funds experienced outflows totaling $111 million, the largest since March. This indicates a slowdown in investment in Bitcoin-related funds as institutional investors sell for profit.
Outflows into short Bitcoin have stopped, but weekly outflows continue
CoinShares’ weekly report revealed that outflows into short Bitcoin have stopped for the first time in over three months. This suggests that institutional investors are no longer betting against the BTC price. However, the weekly outflows indicate that they are not expecting a significant rise in its price either. Short products allow investors to profit when the price of Bitcoin falls.
Altcoins show improving sentiment, with Solana seeing significant inflows
While Bitcoin-related funds experience outflows, altcoin investment products are showing signs of improvement. Altcoins (except Ethereum) recorded $3 million in outflows in week 31 of 2023. Solana saw a substantial increase in buying pressure from institutions in Europe and the United States, with $9.5 million in weekly inflows. Ripple and Litecoin also saw inflows, while Uniswap and Cardano experienced outflows.
Hot Take: Bitcoin outflows continue as institutional investors seek profit, while altcoins show promise
The latest report from CoinShares highlights the ongoing outflows in Bitcoin funds, indicating that institutional investors are taking profit and not expecting a significant rise in its price. However, altcoins, particularly Solana, are showing positive signs with increased buying pressure from institutions. This suggests that the sentiment towards altcoins is improving and they may offer investment opportunities in the crypto market.
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