According to the weekly report on the flow of digital assets Currency shares, Digital asset funds have recorded capital outflows for 3 consecutive weeks. Last week, the report revealed divestments from digital asset funds, with Bitcoin short funds seeing record outflows.
Weekly Digital Asset Line | Source: CoinShares
The report shows that all crypto funds saw net outflows of $53.7 million in the week leading up to May 5. Bitcoin funds had net outflows of $31.8 million and Ethereum funds had net outflows of $2.3 million.
short #bitcoin Funds saw record outflows of $23.1 million last week #Coinshares https://t.co/3lRzmPKUgE
— Kyptos (@azcoinnews) May 9, 2023
Interestingly, though, the short Bitcoin fund — BTC airdrop bets saw a net outflow of $23.1 million, an all-time high. In other words, investors expect Bitcoin to increase in value.
This is highly unusual as it has occurred against the backdrop of overall negative sentiment in the market and a sharp drop in digital asset prices in recent weeks. The reasons could be due to various factors such as regulatory issues, environmental concerns caused by energy-intensive mining activities, etc.
Despite the negative trend, some altcoins continue to attract investment. For example, the Solana fund saw inflows of $3.4 million, while other altcoin funds remained unchanged.
The report is significant because it shows that investors are starting to change their strategies as market conditions change. In addition, interest in digital assets remains strong, but investors have become more selective and cautious about investing.
As the cryptocurrency market continues to evolve, it will be interesting to see how investors adapt and whether the trend of withdrawals from Bitcoin and Ethereum funds and flows into altcoin funds continues. .
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according to Kyptos