Digital Asset Outflows Continue for 6th Week Despite Bitcoin Price Surge

The data may reflect investors’ need for liquidity during the banking crisis, a CoinShares report says.

AccessTimeIconMar 20, 2023 at 6:23 p.m. UTC
Updated Mar 21, 2023 at 2:50 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Despite bitcoin’s price surging, digital asset investment products totaled net outflows for a sixth consecutive week last week, a report by CoinShares shows.

Digital asset net outflows totaled $95 million for the week ending March 17.

Outflows in digital asset investment products for the last six weeks totaled $424 million, the digital asset investment group found.

Bitcoin, ether and multi-asset outflows totaled a combined $130 million, although bitcoin also had $35 million in inflows. Those inflows were short bitcoin, meaning that investors were betting on bitcoin’s price falling.

Overall, the data may reflect a need for liquidity among investors, according to CoinShares. Meanwhile, the largest cryptocurrency by market value’s price has surged from a low of about $19,400 in early March to its current level near $28,000. Over the past week, bitcoin has risen almost 15%.

“It is evident this sentiment is contrarian relative to the rest of the crypto market,” the CoinShares report said. “It may be driven, in part, by the need for liquidity during this banking crisis, a similar situation was seen when the [COVID-19] panic first hit in March 2020.”

After having outflows of $13 million over the past week, Ethereum witnessed inflows totaling $1.3 million.

The positive Ethereum sentiment that led to investors pumping money into ether-related funds reinforces the narrative that the need for liquidity drove bitcoin outflows, according to CoinShares.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Lyllah Ledesma

Lyllah Ledesma is a CoinDesk Markets reporter currently based in Europe. She holds bitcoin, ether and small amounts of other crypto assets.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.