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Home >Markets >Cryptocurrency >Bitcoin investment products see 2nd week of outflows, ether funds in demand

Digital asset investment products based on the world’s biggest cryptocurrency, bitcoin, witnessed the second straight week of sell-off with net outflows totaling $10.4 million last week. On the other hand, ether-based investment products and funds saw third consecutive week of inflows with last week’s net inflows at $11.7 million.

Overall, digital asset investment products saw another quiet week with minimal net inflows totalling $2.9 million last week, according to data from digital asset manager CoinShares.

For altcoins, it was a very quiet week, like ripple, polkadot, multi-asset, cardano and stellar all had inflows but were less than $0.5 million each.

This was in line with low volatility in the bitcoin market, as prices traded between a high of $34,564 and a low of $31,125 during last week.

“We believe the timing of some investment product launches, where investors gained market access for the first time, has led to recent profit-taking rounds, this is evident in the mixed nature of inflows and outflows across different providers," CoinShares said in a note.

The report also highlighted that volumes in bitcoin fell to just 38% of the year-to-date average, totalling $3.9 billion per day last week. “We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during the summer months in recent years," the asset manager said.

US-based Grayscale Investments LLC, remained the biggest digital asset manager with assets under management (AUM) at $27.7 billion, followed by CoinShares at $3.01 billion.

In another report, blockchain data provider Glassnode said that bitcoin transaction activity remained depressed while HODLing behaviour was showing resilience.

“Long-term holders and bull market HODLers appear unshaken by volatility and lower prices. The volume of coins held in an illiquid state continues to grow, and the potential supply squeeze is coming from a much higher base than the 2018-19 bear. This demonstrates the remarkable conviction of bitcoin holders to weather extreme volatility," said Glassnode.

Bitcoin on Tuesday slipped below the $30,000 level and was trading 6% lower at $29,795.75, as per CoinGecko. The digital asset is more than 50% lower than its all-time high of $64,804.72, which was hit on 14 April 2021.

The blockchain data provider, however, added that the crypto market is extremely divided, and one with a likely expansion of volatility just around the corner.

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