Why BTC outflows persist despite renewed hopes for crypto comeback

  • While expectations have been rekindled for the login password ecosystem, BTC's capital outflow continues to grow.
  • With the ascending proximity of Shanghai, investors have shunned the goods of Etay Square.

Digital asset investment products recorded cumulative outflows of $95 million for six weeks, according to a new report from CoinShares. Over the past five weeks, investment products have seen outflows of $406 million, a large portion of which is related to BTC [BTC].

CoinShares, a digital asset investment manager, found that the $406 million outflow recorded in the past five weeks accounted for about 1.2 per cent of AUM. Despite capital outflows last week, AuM increased by 26% to $33 billion. This is the largest AUM since the bankruptcy of Sanjian assets in June 2022.

This means that despite capital outflows from digital asset investment products, AUM has risen rapidly over the past week. This may indicate that despite the worries and ups and downs in the sales market, investors are still interested in digital assets.

The report further found that:

"the trading volume of investment products is twice the average, reaching 2.6 billion US dollars."

The high trading volume recorded last week shows that there are still many thematic activities in the sales market, which may be a sign of increased investor confidence.

Although the hotspot sector has improved significantly, the liquidity of BTC goods has been withdrawn.

Although the login password hotspot section was proactive last week, the total outflow of funds from BTC investment products was 113 million US dollars. According to CoinShares, people's negative feelings about king coins are very different from the wider login password sales market, which mainly performed well in the same period. Interestingly, despite capital outflows last week, BTC's AUM jumped to 32%.

On the other hand, the net inflow of money bearish on BTC's new products reached a record $35 million last week. However, its AUM fell by 13% over the same period.

When talking about why a positive mindset in the market cannot harm BTC, CoinShares says:

"it is clear that this kind of sentiment is reversed compared to the rest of the password market, but it is likely to be driven in part by liquidity requirements during this round of commercial bank distress, a similar situation occurred when COVID anxiety first arrived in March 2020."

Medical ether is lost again.

Also unable to benefit from last week's rising mindset, lead Alt Etherum [ETH] recorded an outflow of $13 million. This brings outflows to $23 million so far that month, according to the CoinShares report.

For other tokens, they include:

"contrary to the trend, there was only a net inflow of $1.3 million last week."

The loss of investment products in Ethernet Square can be attributed to the uncertainty of ETH price once the Shanghai update is implemented. Because the update will be carried out in April, investors are widely cautious.

About Us News Markets Technology Contact Us