More crypto outflows last week, third straight outflow for bitcoin -CoinShares

So far this month, outflows from bitcoin products and funds hit $49mln

  
Representations of Bitcoin cryptocurrency are seen over Brazilian Real notes in this illustration picture taken May 25, 2021.

Representations of Bitcoin cryptocurrency are seen over Brazilian Real notes in this illustration picture taken May 25, 2021.

REUTERS/Ricardo Moraes/Illustration

NEW YORK - Cryptocurrency investment products and funds registered outflows for a third straight week, with bitcoin leading the pack, suffering its third straight outflow as well, according to data from digital asset manager CoinShares released on Monday.

Crypto outflows amounted to $27.6 million for the week ended July 23, with the bulk coming from bitcoin outflows of $24 million.

"Last week's outflows suggest negative sentiment still pervades the asset class despite more recent constructive comments from key industry players," said James Butterfill, investment strategist, at CoinShares.

So far this month, outflows from bitcoin products and funds hit $49 million as the price of the world's most popular cryptocurrency stalled.

On Monday, however, bitcoin touched a six-week high of $40,581.30 in what traders described as a "short squeeze." For the month of July, bitcoin was up 10.4%.

Blockchain data provider Glassnode in a newsletter on Monday said bitcoin's transaction volume and on-chain activity remain "extremely quiet." On a 14-day median basis, the entity-adjusted transaction volume for bitcoin remains depressed at around $5 billion per day, a significant decline from the $16 billion per day prior to the May sell-off, Glassnode said.

Ether investment products and funds also posted outflows, data showed, totaling $7.3 million, after inflows of $11.7 million the previous week.

Ether, the token used for the Ethereum blockchain, rallied on Monday against the U.S. dollar, in line with gains in bitcoin, rising 4% to $2,280. For the month of July, however, ether was down 0.2%. Grayscale remains the largest crypto asset manager, with $28.5 billion, up slightly from last week. Assets under management of CoinShares, the second biggest digital asset manager, was steady at $3.2 billion.

(Reporting by Gertrude Chavez-Dreyfuss; editing by Jonathan Oatis) ((gertrude.chavez@thomsonreuters.com; 646-301-4124; Reuters Messaging: rm://gertrude.chavez.reuters.com@reuters.net))


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