Bitcoin investment products saw record weekly outflows worth $453M, a report by CoinShares reveals. James Butterfill, the head of research at CoinShares, said these outflows were likely responsible for Bitcoin’s $17,760 price that weekend.
While all digital asset investment products faced a record-high $423 M weekly outflow, the outflows were mostly focused on Bitcoin. The $423 M outflows are the largest ever since the records have been maintained. The previous high was recorded in January of this year, which was valued at $198 M.
The outflows represented 1.3% of Assets Under Management, which is the third-highest AuM outflow ever.
Canada Record The Most Bitcoin Outflows
The CoinShares report reveals that the outflows were almost entirely from Canadian exchanges and one specific provider. Purpose Investments, a provider in Canada, saw a weekly outflow worth $490 M.
Canada was the only country to record a weekly outflow of $487 M. Rest of the countries combined had a weekly inflow of $65 M.
The outflows were recorded on 17th June but were reported in the next week’s numbers because of the trade reporting lags. The recorded outflows were likely the reason for Bitcoin’s $17,760 price that weekend. This was the first time Bitcoin fell below its previous cycle’s all-time high of $19,783, which it achieved in December 0f 2019. The outflows depleted Bitcoin Asset under Management to $24.5 bln, the lowest since January of 2021.
Bitcoin’s low price caused massive panic in the crypto market regarding the future of cryptocurrencies.
Polarised Sentiments Among Investors
Despite the record-high outflows from Provision Investments in Canada, other providers and countries mostly saw investment inflows. United States had a weekly inflow of $40M inflow in digital asset investment products, while Germany and Switzerland had approx $11M and $10M weekly inflows respectively.
Moreover, the outflows were mainly focused on Bitcoin. Ethereum reversed an 11-week outflow trend to record an $11M inflow. Short bitcoin also saw an inflow of $15M, following ProShare’s Short Bitcoin ETF announcement.
The outflow-inflow pattern reveals highly polarised sentiments among digital assets investors.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.