Bitcoin Defies Trend as Crypto Funds Experience $342 Million Outflow Streak
Crypto-backed investment funds saw minor outflows totaling $11.2 million last week, marking the third consecutive week of outflows from the sector.
The overall outflows mainly came as a result of significant outflows from altcoin-backed funds, and in particular those backed by Polygon’s native token MATIC, data from crypto investment and research firm CoinShares showed.
According to the data, MATIC-backed funds saw outflows of $8.6 million, making up nearly all outflows from the “other” category in CoinShares’ report.
Other fund categories that recorded outflows for the week included Ethereum (ETH) funds, which saw net withdrawals of $3.2 million.
Short-Bitcoin funds – funds that rise in value as Bitcoin’s price falls – saw outflows of $3.3 million, indicating that bearish speculators are now also taking some chips off the table.
On the positive side were funds backed by Bitcoin (BTC), which for the week recorded inflows of $3.8 million from bullish Bitcoin investors.
The inflows mark a strong improvement from the week before when Bitcoin funds saw outflows of more than $149 million, and two weeks earlier when Bitcoin outflows stood at $42 million.
For the past seven weeks, the total outflows from all crypto funds as a whole now stand at 342 million.
While flows overall were little changed, trading volumes did tick up over the week, coming in at a weekly total of $2.8 billion.
The figure is 90% above the year-to-date average, which hints at increased interest in crypto among investors, possibly as a result of the drama around a potential spot Bitcoin exchange-traded fund (ETF).
Commenting on the weekly flows, CoinShares’ analyst James Butterfill wrote in the report that the inflows for Bitcoin could be a sign that negative
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