Crypto investment products recorded another week of outflows as investors moved out $19.5 million funds this week. This also makes it the fourth consecutive week of outflows from digital asset investment products. The money has continued to move out of these funds despite the recent price recovery in the crypto market.
A total of $295 million has flowed out of crypto investment funds since mid-May and analysts believe the current outflow despite price recovery suggests investors are taking a profit. The crypto market broke out of nearly 8 weeks of bearish phase as most of the crypto assets recorded new monthly highs. Bitcoin managed to get past the $40K barrier and Ether touched the $2,600 mark.
The price of crypto assets has started to decline again amid uncertainty around the new Senate Bipartisan infrastructure deal that would impose a multi-billion dollar tax on the crypto market.
Bitcoin See Biggest Outflow Despite Record Inflows
Bitcoin has seen the highest outflows over the past 4 weeks at $20 million, despite the record inflows of US$4.1 billion year-to-date. Ether saw the second-most outflows over the course of the past 4 weeks with $9.5 million moved away from crypto investment products. However, compared to Bitcoin, Ether has only seen outflows in 6 of the last 12 weeks, while Bitcoin outflow continued for 10 of the past 12 weeks.
Multi-asset crypto investment providers saw a net inflow of $7.5 million, while the trading volume for crypto investment products rose by 173% this week as the price showed signs of recovery. ETC Issuance saw the biggest inflow of funds followed by Grayscale while Purpose ETF registered an outflow of funds along with CoinShares.
The crypto market cap is still above $1.5 trillion after losing nearly 3% of its valuation over the past 24-hours. All the crypto assets in the top-10 remained in the red territory after failing to consolidate above their recent resistance. BTC slid below $40K while ETH price was trading under $2,500. ETH’s London Hardfork is also scheduled to commence today and the market outlook is quite bullish towards the upgrade.