investment fund backed by exit bitcoin (btc) The spot price of the cryptocurrency rose sharply last week despite a massive increase.
Bitcoin fund outflows for the week reached $112.8 million, marking slightly better investor sentiment compared to the previous week. $243.5 million left BTC-backed fundaccording to the new reports From Coinshare.
Interestingly, outflows from bitcoin funds occurred as short-bitcoin funds – funds that make money when bitcoin prices fall – saw a record inflow of $35 million for the week.
Meanwhile, funds backed by Ethereum’s native token ETH Last week saw outflows of $12.7 million, a slight deterioration from the $11 million outflows seen last week.
For the digital asset space overall, net outflows came in at $95 million, helped by inflows into the mentioned short-bitcoin funds and funds backed by other altcoins, including Litecoin (LTC), Solana (SOL), polygon (matic) And XRP,
The week notably marked the sixth consecutive week of gains from both bitcoin funds and crypto funds more broadly.
Explaining the outflow, which was contrary to the generally bullish sentiment in the crypto market, CoinShares suggested that it could be due to the need for liquidity by large market participants.
“It is clear that this sentiment is in contrast relative to the rest of the crypto market, but it may be partly driven by the need for liquidity during this banking crisis, a similar situation was seen when the COVID panic in March 2020 was the first hit,” the report said.
It added that the inflow into altcoin-backed funds “lents further credence to the notion that outflows into larger crypto assets were driven by a need for liquidity.”
The spot bitcoin price rose a respectable 27% last week, ending the week at a price of $27,973.