Bitcoin ETFs Experience $1.9M Outflows, Are Bearish Sentiments Waning?

Investment in digital assets surged in the past week, with inflows hitting $1.35 billion, bringing the total to $3.2 billion over the last three weeks. Exchange Traded Products (ETPs) also experienced a significant uptick in trading volumes, rising by 45% to $12.9 billion. Despite this increase, ETPs only accounted for 22% of the overall crypto market volumes.

Bitcoin saw substantial inflows of $1.27 billion last week, as per the recent CoinShares’ Digital Asset Fund Flows Weekly Report. On the contrary, short-bitcoin ETPs faced outflows of $1.9 million, contributing to total outflows of $44 million since March. This shift indicates a shift in investor sentiment away from bearish positions on bitcoin’s price trajectory.

The positive sentiment towards bitcoin has been consistent since the halving event in April, with total outflows amounting to $44 million, equivalent to 56% of assets under management (AuM). Ethereum also saw a boost, with $45 million in inflows last week, making it the altcoin with the highest year-to-date (YTD) inflows at $103 million, surpassing Solana. While SOL had inflows of $9.6 million, it now trails behind ETH with $71 million in YTD inflows. Litecoin was another altcoin that attracted inflows, receiving $2.2 million last week.

In addition, Chainlink recorded $0.7 million in inflows, followed by XRP with $0.5 million and Cardano with $0.4 million. Conversely, blockchain equities faced challenges, with outflows of $8.5 million last week, despite most ETFs outperforming global equity indices.

Looking at regional trends, the US and Switzerland led in inflows with $1.3 billion and $66 million, respectively. Canada and Australia followed with $7.8 million and $3.8 million in inflows. On the other hand, Germany experienced outflows of $5.2 million, while Hong Kong and Brazil saw minor outflows totaling $1.9 million and $1.7 million. Sweden also recorded minimal outflows of $0.6 million during the same period.

Overall, the crypto market continues to attract significant investment, with Bitcoin and Ethereum leading the way in terms of inflows. The positive sentiment surrounding these digital assets reflects a growing confidence among investors, signaling a shift towards more optimistic market outlooks.