{"id":57258,"date":"2023-09-05T17:15:11","date_gmt":"2023-09-05T21:15:11","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/bitcoin-defies-trend-as-crypto-funds-experience-342-million-outflow-streak\/"},"modified":"2023-09-05T17:15:14","modified_gmt":"2023-09-05T21:15:14","slug":"bitcoin-defies-trend-as-crypto-funds-experience-342-million-outflow-streak","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=57258","title":{"rendered":"Bitcoin Defies Trend as Crypto Funds Experience $342 Million Outflow Streak"},"content":{"rendered":"
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Crypto-backed investment funds saw minor outflows totaling $11.2 million last week, marking the third consecutive week of outflows from the sector.<\/p>\n

The overall outflows mainly came as a result of significant outflows from altcoin-backed funds, and in particular those backed by Polygon\u2019s native token MATIC, data from crypto investment and research firm CoinShares showed.<\/p>\n

According to the data, MATIC-backed funds saw outflows of $8.6 million, making up nearly all outflows from the \u201cother\u201d category in CoinShares\u2019 report.<\/p>\n

Other fund categories that recorded outflows for the week included Ethereum (ETH) funds, which saw net withdrawals of $3.2 million.<\/p>\n

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Short-Bitcoin funds \u2013 funds that rise in value as Bitcoin\u2019s price falls \u2013 saw outflows of $3.3 million, indicating that bearish speculators are now also taking some chips off the table. \u00a0<\/p>\n

On the positive side were funds backed by Bitcoin (BTC), which for the week recorded inflows of $3.8 million from bullish Bitcoin investors.<\/p>\n

The inflows mark a strong improvement from the week before when Bitcoin funds saw outflows of more than $149 million, and two weeks earlier when Bitcoin outflows stood at $42 million.<\/p>\n

For the past seven weeks, the total outflows from all crypto funds as a whole now stand at 342 million.<\/p>\n

While flows overall were little changed, trading volumes did tick up over the week, coming in at a weekly total of $2.8 billion.<\/p>\n

The figure is 90% above the year-to-date average, which hints at increased interest in crypto among investors, possibly as a result of the drama around a potential spot Bitcoin exchange-traded fund (ETF).<\/p>\n

Commenting on the weekly flows, CoinShares\u2019 analyst James Butterfill wrote in the report that the inflows for Bitcoin could be a sign that negative sentiment is \u201con the turn.\u201d<\/p>\n

\u201cYear-to-date digital asset investment products remain in a net inflow position,\u201d the report said, adding that the year so far has been \u201cbeset with large gyrations of investor flows, very much driven by the hopes and concerns for regulation on digital assets.\u201d<\/p>\n

\u201cLast week exemplified this, beginning the week investors had high hopes for a spot ETF approval in the US, only to be quashed by the announcement of a delay for all other spot ETF applications,\u201d the report said.<\/p>\n<\/p><\/div>\n