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Bitcoin investment funds experience weekly withdrawals totaling $111 million, the highest since March, according to CoinShares.
For the week concluding on Aug. 4, weekly cryptocurrency asset flows recorded outflows of $107 million, continuing a three-week downward trend that totals $134.8 million.
The predominant portion of this movement was linked to Bitcoin (BTC), which experienced outflows of $111 million, effectively offsetting most of the week’s inflows.
As per CoinShares’ Digital Asset Fund Flows weekly report, this suggests ongoing “profit taking” following the gains from the previous cycle. In the month preceding the recent outflows, crypto funds saw inflows of $742 million, with Bitcoin accounting for 99% of that total.
Source: CoinShares
The report indicated that weekly trading volumes in investment products fell below the average for the year to date, with overall on-exchange market volumes declining by 62% compared to the relative average.
Regionally, only Australia and the United States reported inflows, with $0.3 million and $0.2 million, respectively. The most significant outflows were observed in Canada, totaling $70.8 million, and Germany, with $28.5 million.
Despite the outflows from Bitcoin, the weekly total was somewhat supported by inflows from Solana (SOL), which amounted to $9.5 million, an increase from last week’s inflows of $0.6 million. XRP (XRP) investment products also recorded inflows of $0.5 million.
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Ether (ETH) funds continued their downward trend, adding $5.9 million in outflows to the previous week’s $1.9 million. This completely offsets earlier inflows of $6.6 million and further distances it from Solana’s current upward trend.
➡️ $SOL recorded the largest inflows, totaling US$9.5m, indicating a growing positive sentiment towards #altcoins. Other notable mentions include $XRP and $LTC.
4/5 pic.twitter.com/0v8V9DjwRQ— CoinShares (@CoinSharesCo) August 7, 2023
While Bitcoin remains higher for the year compared to its January opening, many analysts suggest that some of the perceived sideways movement, which has kept it largely below $30,000 since April, is a result of market uncertainty.
As reported by Cointelegraph, data from the Switzerland-based investment advisor 21e6 Capital AG indicates that Bitcoin “hodlers,” those who retained funds in BTC, outperformed crypto funds by 69% in the first half of 2023.
The collapse of FTX in 2022, along with regulatory and legal uncertainties surrounding various other exchanges, may have prompted crypto fund investors to increase their cash reserves relative to invested funds, contributing to the current decline.
The report from 21e6 Capital AG did observe that investor sentiment currently seems to be slightly improved compared to the first half of 2023.
Related: European digital asset manager CoinShares’ revenue up 33% in Q2
