Bitcoin sees first outflows in a month as Ethereum, XRP enjoy investors’ confidence

admin July 24, 2023

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Digital asset investment products posted a $6.5 million outflow this week after four consecutive weeks of total inflows of $742 million. coin share Reported on July 24th.

This week’s outflow marks the longest streak of inflows since late 2021, coinciding with the recent market downturn that saw the Bitcoin (BTC) price plunge to its lowest level since June 21.

Coinshares also reported that trading volume for the week ending July 21st was $1.2 billion, below its annual weekly average of $1.4 billion and well below the $2.4 billion recorded for the week ending July 14.

Source: Coinshare

Ethereum and XRP are seeing inflows.

Last week, the Ethereum (ETH) investment product topped the inflow leaderboard with $6.5 million inflows.

James Butterfill, head of research at Coinshares, wrote that the inflow suggests a possible shift in sentiment around the asset. Since the beginning of the year, ETH has recorded a $68 million outflow in year-to-date indicators.

Ethereum, BTC inflow — Source: Coinshare

XRP, on the other hand, saw inflows of $2.6 million during the same period, bringing its year-to-date inflows to $10 million.

Coinshares noted that investor confidence in XRP has increased following Ripple’s partial victory over the U.S. Securities and Exchange Commission (SEC). The company said its digital asset investment products saw inflows of $6.8 million in 11 weeks.

Other altcoins such as Solana (SOL), Polygon (MATIC) and Uniswap (UNI) recorded smaller inflows of $1.1 million, $0.7 million and $0.7 million respectively.

Bitcoin accounts for the majority of outflows

After weeks of overwhelming inflows, investors withdrew $13 million from Bitcoin investment products. In contrast, the BTC short investment product recorded his $5.5 million outflow, continuing its 13th consecutive week of outflows.

Bitcoin short-term investments currently have $103 million in assets under management. At its peak, it accounted for 1.4% of all Bitcoin investment products. It is now down to 0.4%.

Coinshares said the main cause of the outflow was due to negative sentiment in the North American market, with 99% of the $21 million outflow coming from the North American market. However, inflows of $12 million in Switzerland and $1.9 million in Germany were able to offset the impact.

An article first appeared on CryptoSlate about Bitcoin’s first outflow in a month as Ethereum and XRP enjoy investor confidence.