Digital asset investment products witnessed outflows of $16 million last week, putting an end to an 11-week streak of consecutive inflows.
According to the latest report by CoinShares, Bitcoin-based funds bore the brunt of the outflows, with a total of $32.8 million exiting the market.
Additionally, short Bitcoin (BTC) investment products also suffered outflows, reaching $0.3 million.
Despite the outflows, trading activity remained higher than the yearly average, with a total volume of $3.6 billion recorded last week, compared to the $1.6 billion average.
This reversal in investor sentiment coincided with a decline in the price of Bitcoin, which dropped approximately 5% during the week, thus ending an eight-week streak of consecutive gains.
At the time of writing, Bitcoin is currently trading at $40,800.
Leading asset managers including CoinShares, Bitwise, Grayscale, ProShares, and 21Shares all experienced net outflows during this period, marking a significant departure from the previous trend.
CoinShares’ Head of Research James Butterfill said the outflows appear to be driven more by profit-taking rather than a fundamental shift in sentiment towards the asset class.
Analysis of regional flows reveals that the majority of net outflows originated from the U.S. and German markets, amounting to $18.3 million and $9.7 million respectively.
Conversely, Switzerland experienced inflows of $9.1 million, while Canada recorded $6.9 million in inflows.
These mixed regional flows suggest that investors are capitalizing on recent gains, opting to secure profits rather than expressing a lack of confidence in digital assets as a whole.
Despite the recent market downturn, Samson Mow, CEO of Jan3, believes Bitcoin has