Crypto investment products see 4th consecutive week of outflows, are investors taking profit?

By Prashant Jha
Published August 3, 2021 Updated August 3, 2021
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Crypto investment products see 4th consecutive week of outflows, are investors taking profit?

By Prashant Jha
Published August 3, 2021 Updated August 3, 2021

Crypto investment products recorded another week of outflows as investors moved out $19.5 million funds this week. This also makes it the fourth consecutive week of outflows from digital asset investment products. The money has continued to move out of these funds despite the recent price recovery in the crypto market.

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A total of $295 million has flowed out of crypto investment funds since mid-May and analysts believe the current outflow despite price recovery suggests investors are taking a profit. The crypto market broke out of nearly 8 weeks of bearish phase as most of the crypto assets recorded new monthly highs. Bitcoin managed to get past the $40K barrier and Ether touched the $2,600 mark.

Source: Coinshares

The price of crypto assets has started to decline again amid uncertainty around the new Senate Bipartisan infrastructure deal that would impose a multi-billion dollar tax on the crypto market.

Bitcoin See Biggest Outflow Despite Record Inflows

Bitcoin has seen the highest outflows over the past 4 weeks at $20 million, despite the record inflows of US$4.1 billion year-to-date.  Ether saw the second-most outflows over the course of the past 4 weeks with $9.5 million moved away from crypto investment products. However, compared to Bitcoin, Ether has only seen outflows in 6 of the last 12 weeks, while Bitcoin outflow continued for 10 of the past 12 weeks.

Source: Coinshares

Multi-asset crypto investment providers saw a net inflow of $7.5 million, while the trading volume for crypto investment products rose by 173% this week as the price showed signs of recovery. ETC Issuance saw the biggest inflow of funds followed by Grayscale while Purpose ETF registered an outflow of funds along with CoinShares.

Source: Coinshares

The crypto market cap is still above $1.5 trillion after losing nearly 3% of its valuation over the past 24-hours. All the crypto assets in the top-10 remained in the red territory after failing to consolidate above their recent resistance. BTC slid below $40K while ETH price was trading under $2,500. ETH’s London Hardfork is also scheduled to commence today and the market outlook is quite bullish towards the upgrade.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Prashant Jha
987 Articles
An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.

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