Bitcoin Outflows Cool Down; ‘Mixed’ Investor Opinions Result in Ethereum Recording its Largest Outflow
While sentiment has weakened, on the whole, investors “remain committed,” with the magnitude of inflows this year already nearly matching $6.7 billion for the entire 2020.
Digital asset investment products had a second consecutive week of outflows totaling $21 million, as per CoinShares report.
This brings total weekly outflows since mid-May to $267 million, representing 0.6% of total assets under management (AUM).
Over the last month, sentiment has weakened but “on the whole remains committed,” given the magnitude of inflows this year, which is 13% of AUM at $5.8 billion, nearly matching $6.7 billion for the entire 2020, noted the report.
The outflows were focused on Bitcoin until now, but last week, Ethereum had the largest outflows on record at $12.7 million. ETH 2.25% Ethereum / USD ETHUSD $ 2,612.25
$58.782.25% Volume 22.07 b Change $58.78 Open $2,612.25 Circulating 116.95 m Market Cap 305.49 b 8 h Bitcoin Drops Under $40k While Ether Stands its Ground at $2,600 Amidst NFT Craziness and Ahead of EIP-1559 Activation 2 d MSTR Stocks Are A “Leverage Long” Bet on Bitcoin, says MicroStrategy CEO Michael Saylor 2 d Bitcoin and Ether Print Green Candles for 10 Consecutive Days, OI on FTX & CME Rises Sharply & Faster than Binance
Inflows were mixed last week after staunch support of Ethereum over recent months, “implying mixed opinions among investors.”
Meanwhile, outflows in Bitcoin cooled to just $10 million, significantly less than the previous record week of $141 million. Trading activity in Bitcoin investment products also rose by 43% compared to the previous week.
The price of Bitcoin also surged past $41,000 this week, for the first time since late May.
While BTC is still trading about 38% below its ATH, Dan Morehead, co-chief investment officer at Pantera Capital, said in his Blockchain Letter on Monday that investors should resist the urge to close positions and instead go the other way. Morehead said,
“Bitcoin generally goes way up…Anyone that has held bitcoin for 3.25 years has made money.”
XRP saw minor outflows, $2.8 million following a six-week run of inflows totaling $21 million. Other digital asset investment products also had minor inflows, notably from Cardano’s $1.7 million and Stellar’s $1 million.
Meanwhile, Grayscale, the largest digital currency manager, raised its AUM to $33.04 billion from $30.3 billion the previous week. CoinShares had its AUM slip to $3.8 billion, from nearly $4 billion the week before.