Why BTC outflows persist despite renewed hopes for crypto comeback

ambcrypto.com:

According to a new report by CoinShares digital asset investment products recorded six consecutive weeks of outflows totaling $95 million. Over the last five weeks, there has been $406 million in outflows from investment products, with a notable portion of those outflows being related to Bitcoin [BTC].

The digital asset investment firm CoinShares found that the $406 million outflows registered in the past five weeks represented 1.2% of total assets under management (AuM). Despite the outflows in the last week, AuM rose by 26% to reach $33 billion. This is the highest AuM since the collapse of Three Arrows Capital in June 2022. 

This meant that while there has been a trend of outflows in digital asset investment products, the AuM still rose significantly over the last week. This could indicate that investors were still interested in digital assets despite concerns and volatility in the market.

The report further found:

“Trading volumes in investment products were double the average at US$2.6bn.”

The high trading volumes recorded last week indicated that there was still significant activity in the market, which could signal increased confidence among investors.

Source: CoinShares

Despite the positive crypto market sentiment last week, BTC saw outflows from investment products totaling $113 million. According to CoinShares, the negative sentiment towards the king coin was in “stark contrast to the broader crypto market,” which performed relatively well during the same period. Interestingly, despite last week’s outflows, BTC’s AuM jumped by 32%.

On the other hand, Short-Bitcoin products saw record inflows of $35 million last week. However, its AuM dropped by 13% during the same period.

Opining on why the positive sentiment