Investment in crypto products has fallen for a 4th straight week, with bitcoin logging a 2nd monthly outflow in July: CoinShares

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Investment in crypto products has fallen for a 4th straight week, with bitcoin logging a 2nd monthly outflow in July: CoinShares
Bitcoin Nurphoto
  • Crypto products saw 4 weeks of outflows, with $19.5 million in the week to July 30, according to CoinShares.
  • Bitcoin saw $67.8 million in outflows, while ether saw outflows of $1.9 million over the course of July.
  • Investors were using the "recent strength in prices to take profits" the report said.
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Investment in crypto products fell for a fourth consecutive week in late July, with bitcoin "bearing the brunt" of the sell-off, according to research by CoinShares late on Monday.

Bitcoin saw a second month of outflows in a row in July, with a drop of $67.8 million. But this was far more modest than the $249.8 million outflow in June.

"We saw much larger outflows in May/June - it seems that the outflows are slowing," CoinShares investment strategist James Butterfill said.

In the last week in July, bitcoin surged above $38,000 for the first time in 6 weeks. Over the month, bitcoin gained 18.4% - its biggest one-month increase since March - having recovered from lows below $29,000.

"Investors were using recent strength in prices to take profits," the report said.

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CoinShares is Europe's biggest crypto asset manager and its report looks at digital asset investment product activity across the globe.

Ether saw outflows of $1.9 million in the seven days to July 30, the second week of declines in row, despite having gained around 28% in value over the whole of July.

The more widely traded altcoins logged modest inflows over the month. Ripple's XRP saw inflows worth $2.7 million, polkadot's dot saw $1 million and cardanos' ada posted $0.5 million worth of inflows.

The report showed that multi-asset investment products, such as the Bitcwise 10-crypto index fund, bucked the trend, with inflows of $7.5 million.

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