Net inflows to digital asset investment products declined by about $23 million last week to $83 million, though a recent bout of profit taking appears to have subsided, according to a new report by CoinShares, a digital asset investment firm.
- “As is often the case when bitcoin prices make new highs, prices typically range trade in conjunction with a round of profit taking. Recently we have witnessed a similar profit-taking round (minor outflows) following all-time highs in mid-March 2021,” wrote CoinShares.
- “This now looks to have run its course, with the minor outflows over the last month gradually diminishing.”
- Last week was the first week of no outflows across funds since mid-February.
- Bitcoin (BTC) prices were mostly stagnant last week, stuck in a range between roughly $55,000 and $60,000, unable to break through the all-time high around $61,700 reached in mid-March.
- Bitcoin-focused funds received most inflows in the seven days through April 9, totaling $55 million, while Ethereum products attracted $22 million. Multi-asset digital investment products saw inflows of $8 million last week, the most since February.
- Rising inflows outside of bitcoin products coupled with Ethereum’s rise in popularity “indicate investors are beginning to turn their focus onto alternative digital assets,” according to CoinShares.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.