A new high for Bitcoin and the crypto market, but here’s why it will change…

by James · March 14, 2023

Digital the investment product had the largest single weekly outflow on record last week.
BTC’s outflows represented 95% of the total money leaving the market

According to a new report of digital asset investment firm CoinShares recorded product outflows the largest single weekly outflow on record last week. It found it record outflows of $255 million were removed from digital asset investment products last week, marking the fifth consecutive week of outflows. Last week’s payouts represented just 1.0% of total assets under management (AuM).

However, the fall in assets under management culminated in a 10% decline in total assets under management, reaching the same level as at the start of 2023. The $225 million payouts “wiped out all inflows seen this year,” CoinShares found.

The significant decrease in assets under management is a sign of a lack of confidence among investors due to increased volatility in digital assets. The record outflows also indicated that investors were withdrawing from digital asset investment products, possibly in search of safer investment options.

Source: CoinShares

Bitcoin and its card products

After several weeks of non-stop inflows into Short-Bitcoin products, they logged outflows totaling $1.2 million last week. On an annualized basis, short-Bitcoin is “now the investment product with the largest inflow at $49 million,” CoinShares noted.

Of the $255 million removed from the digital asset investment product market last week, Bitcoin [BTC] recorded the highest outflows. According to the report, the royal coin recorded total outflows of $244 million, representing a whopping 95% of all money removed from the sector last week.

Despite last week’s smaller outflows from Short-Bitcoin products, the value of assets under management increased by 9%. This was in stark contrast to Long-Bitcoin AuM, which fell by 10% in the same period. As for BTC’s fund flows so far this year, CoinShares found that this amounted to $118 million.

Source: CoinShares

Bearish Outlook for Ether as Shanghai Upgrade Approaches?

With the Shanghai upgrade scheduled to take place in a few weeks, there is a prevailing sense of caution among investors. Especially among those who are uncertain about Ethereum’s direction [ETH] price after the release of previously locked ETH coins.

This has led to several weeks of outflows from the leading altcoin. Last week, no different, ETH outflows logged $11 million, CoinShares found. This led to the flows being negative so far this year.

“Ethereum also saw outflows totaling $11 million last week, while year-to-date flows have also turned negative, but to a much lesser extent at $3 million.”

As for other altars,

“Other altcoins saw smaller inflows, such as Solana ($0.4 million) and XRP ($0.3 million).”

Here, however, it is worth noting that the aforementioned report did not take into account Bitcoins and by extension the rest of the crypto market’s price performance in the last 24 hours. At the time of writing, the world’s largest cryptocurrency was approaching $25,000 on the price charts, while the rest of the market was also in the green.

This may just provide a much-needed boost to the supply of investment products for digital assets. The same should be clear when the next edition of the report is released.