Cryptocurrency investment products saw a small net outflow last week. This comes after six weeks of net inflows, CoinShares reports in a new weekly report. Is this a sign of a trend reversal in the market?
[1/5] This week’s Digital Asset Fund Flows Report is now available. The headline for this week is: Minor outflows totaling US$17m, split sentiment between America & Europe. Read on for the highlights -> pic.twitter.com/UfDgzPhhM1
— CoinShares 👩🚀 (@CoinSharesCo) August 15, 2022
Trend reversal not detectable
CoinShares reports in the report that net outflows for crypto funds last week totaled about $17 million. Although this follows after six weeks of inflows, it is a relatively small amount.
According to James Butterfill of CoinShares, it is therefore difficult to determine whether this is an actual trend reversal in investor sentiment. It might suggest that institutional investors chose to take some profits last week:
“It is difficult to determine whether this is a meaningful change in sentiment given the small size, although a small outflow was observed across a wide range of providers. It also comes at a time of low trading volume and a rebound in prices, suggesting there could be an element of small profit-taking.”
Difference crypto funds America & Europe
It is striking that again the sentiment between the regions differs strongly. European exchanges saw a net inflow of approximately $20 million, of which $13.9 million was in Germany. US exchanges saw an outflow of about $35.2 million. Curiously, the largest part, at $25.7 million, flowed from Canada. The remaining $1.8 million flowed from Brazil and Australia.
[3/5] Bitcoin bore the brunt of the outflows which totalled US$21m last week, this being the second consecutive week of outflows bringing month-to-date outflows to US$29m. Short bitcoin saw minor inflows totaling US$2.6m.
— CoinShares 👩🚀 (@CoinSharesCo) August 15, 2022
Bitcoin outflows, altcoins inflows
Among the various crypto, bitcoin (BTC) funds took the hardest hit. $20.9 million flowed from these products last week. Short bitcoin positions, for investors speculating on a price decline, actually saw net inflows of $2.6 million last week.
The altcoins remained very quiet last week and most saw a net inflow, albeit very small. For ethereum (ETH) products this only came in at $100,000, for ripple (XRP) and cardano (ADA) at $200,000 each. Nothing changed for solana (SOL) funds.