Bitcoin Outflows Surge: $95M Leaves Funds Despite Price Boost

Summary

• Outflows from investment funds backed by Bitcoin (BTC) rose to $112.8 million last week, despite a dramatic rise in the spot price of the cryptocurrency.
• Short-bitcoin funds saw record inflows of $35 million for the week, while funds backed by Ethereum’s native token ETH saw outflows of $12.7 million.
• In total for the digital asset space, the net outflows came in at $95 million, helped by inflows into short-bitcoin funds and other altcoins like Litecoin (LTC), Solana (SOL), Polygon (MATIC) and XRP.

Bitcoin Outflows Surge to $95 Million

Investment funds backed by Bitcoin (BTC) experienced a surge of outflows last week despite a massive increase in its spot price. According to CoinShares’ report, outflows from bitcoin funds reached $112.8 million and short-bitcoin funds saw record inflows of $35 million for the same period. Funds backed by Ethereum’s native token ETH had an outflow of $12.7 million which was slightly worse than what was seen in the previous week ($11million). Overall, there were net outflows of $95million due to increased flows into short-bitcoin and other altcoin investments such as Litecoin (LTC), Solana (SOL), Polygon (MATIC) and XRP.

CoinShares Report Reveals Alarming Trend

The report from CoinShares suggested that these alarming trends could be attributed to large market players who needed liquidity during this banking crisis; similar behavior was observed when COVID first hit in March 2020. This sentiment is contrary to what is seen across rest of crypto markets but it looks like investors are turning towards altcoins as well instead of just sticking with bitcoin given its higher risk profile lately due to its high volatility levels over past few weeks coupled with uncertainty over regulations looming around it worldwide.

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The spot Vitcoin price rose 27% last week ending at a price point of $27,973 according to CoinGecko data for past 30 days; however this spike has not been able to keep investors away from pulling their money out from BTC related investments as evidenced by net outflow figures mentioned above which have now gone on for 6 consecutive weeks indicating weak investor sentiment towards BTC based investments currently despite overall bullishness seen across crypto markets recently driven largely because institutional investors entering into crypto space worldwide with some big names such as Tesla investing heavily into bitcoin recently driving up prices drastically along with more widespread acceptance amongst retail traders alike adding further fuel onto bull run witnessed recently across crypto markets world wide

Conclusion

Net outflow figure clearly indicates weak investor sentiments towards BTC based investments currently despite overall bullishness seen across crypto markets recently driven largely because institutional investors entering into crypto space worldwide; however this shift towards altcoins gives hope that situation may improve going forward if prices remain stable or continue rising gradually instead drastic spikes followed by sharp dips which can scare away new entrants leading them back towards traditional safe havens such as gold and government bonds etc