Digital Asset Funds Suffered Outflows as Bitcoin Price Recovered
Digital-asset investment products had their fourth straight week of net outflows, even as cryptocurrency markets staged their biggest rally since early this year.
Net outflows across all digital-asset funds totaled $19.5 million, according to a report Monday by CoinShares.
Bitcoin-focused funds had outflows totaling $19.7 million, partly offset by net inflows to funds focused on other categories, including multi-asset funds.
Related: Bitcoin Approaching Short-Term Support at $34K-$36K
The price of bitcoin has been on the rise since its July 20 low around $29,000. At press time, bitcoin was trading at $39,716, down 3% on the day.
The outflows during bitcoin’s recent price recovery suggests “investors were using recent strength in prices to take profits,” according to the CoinShares report.
On a year-to-date basis, cumulative inflows for all digital-asset funds remain high , at $4.1 billion, the firm said..
Funds focused on ether, the native cryptocurrency of the Ethereum blockchain and the second-biggest overall after bitcoin by market cap, had outflows totaling $9.5 million, for the second consecutive week. The report said that although investors have been more forgiving, ether is seeing outflows in “only six of the last 12 weeks, compared to 10 for bitcoin.”
