Crypto-backed investment funds experienced minor outflows totaling $11.2 million last week, marking the third consecutive week of this trend. The primary contributor came from altcoin-backed investment baskets, predominantly those associated with Polygon’s native token MATIC, as per data released by investment and research firm CoinShares. MATIC-based funds experienced a significant outflow of $8.6 million, almost entirely contributing to the losses from the broader ‘other’ category of the report.
Ethereum (ETH)-backed funds weren’t exempt either, as they recorded withdrawals of $3.2 million. In another striking observation, short-Bitcoin funds – those that appreciate in value as Bitcoin’s price dwindles – underwent outflows worth $3.3 million, suggesting that even bearish stakeholders are withdrawing their stakes.
However, it wasn’t all grim news in the crypto market. Bitcoin (BTC) funds, the most popular category, demonstrated an invigorating performance by marking inflows to the tune of $3.8 million. This performance shows a significant rebound from previous weeks when Bitcoin funds experienced outflows of more than $149 million. The total outflows from all crypto funds, over the past seven weeks, now stand at an alarming 342 million.
There was some hint of elevated interest in crypto, as illustrated by a surge in trading volume, which reached a weekly total of $2.8 billion, an outstanding 90% above the year-to-date average. The spike in trading volume could be attributed to the anticipation and uncertainty surrounding a possible Bitcoin spot exchange-traded fund (ETF).
Analyst at CoinShares, James Butterfill, noted that these inflows into Bitcoin could indicate a potential shift in the currently lukewarm sentiment towards the premier cryptocurrency. However, crypto markets, in general, have been roiling with investor anxieties and expectations, largely centered around potential regulatory measures. This was highlighted last week when investors’ high hopes for a spot ETF approval in the US fell flat following an announced delay for all other spot ETF applications.
Yet, despite the whirling dynamics of inflows and outflows, crypto investment products maintain a net inflow year-to-date, demonstrating a persistent investor interest in the digital asset class, no matter how fluctuating the markets may be.
Source: Cryptonews
