Bitcoin Hits Six-Month High, Outflows Hit $32 Million
• Bitcoin products saw $25 million in outflows last week, according to asset manager CoinShares.
• US regulators increased their crackdown on multiple industry sectors resulting in total crypto funds outflows of $32 million.
• Despite the negative sentiment, Bitcoin prices rose 10% over the week pushing the total assets under management in exchange-traded products (ETPs) to its highest level since last August.
Bitcoin Products Record Outflows
Last week, Bitcoin products saw $25 million in outflows according to asset manager CoinShares with short Bitcoin investment products accounting for $3.7 million in inflows due to negative investor sentiment.
US Regulators Increase Crackdown
The US Securities and Exchange Commission (SEC) increased its crackdown on stablecoins and staking services among other sectors of the crypto industry leading to a total of $62 million worth of outflows from digital assets investments.
Mid-Week Sentiment Flip
Despite the bearish sentiment towards crypto assets, Bitcoin prices managed to hit a six-month high above $25,000 and recorded a 10% increase over the week. This positive price appreciation resulted in $30 million being invested into digital asset products which pushed ETPs‘ total assets under management up to its highest level since last August.
CoinShares Head of Research James Butterfill released a weekly funds flow report on Monday documenting all these changes. According to Butterfill, despite reaching a new year-to-date high, Bitcoin still bore the brunt of negative market sentiment as seen through the outflows from digital assets investments.
Despite regulatory concerns and bearish investor sentiment, Bitcoin prices still managed to reach new heights this past week resulting in an influx of capital into digital asset products pushing ETPs‘ total assets under management up significantly