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Bitcoin and other digital asset investment products saw net outflows last week despite a market rally that took Bitcoin’s price above the $28,000 threshold for the first time since June 2022, the latest CoinShares weekly report showed. This was the sixth straight week of net outflows for bitcoin funds, totaling $424 million during that period.

Digital Asset Funds Saw $95m in Outflows Last Week

Digital asset funds recorded a sixth consecutive week of net outflows last week, at $95 million, according to CoinShares. This brings the total amount in the previous five weeks to $406 million, representing roughly 1.2% of total assets under management (AuM). AuM has grown by 26% over the past week to $33 billion, its highest since the Three Arrows Capital (3AC) fallout in June 2022.

Similar to the week before, Bitcoin was at the center of negative investor sentiment, with its investment products seeing $113 million in outflows last week, amounting to $424 million for the previous six weeks. Despite the outflows, the total AuM increased by 32% last week.

Meanwhile, the short-bitcoin investment products saw record inflows of $35 million during the week, but its AUM declined by 13% over that period. Ethereum and multi-asset investment products also recorded outflows of $12.7 million and $5.2 million, respectively.

Bitcoin Breaches $28,000 Amid Persisting Banking Issues

The sixth straight week of outflows comes in the face of the latest crypto rally that propelled Bitcoin above the $28,000 mark for the first time since June 2022. Other coins, including Ether, Solana, Cardano, and Polygon, also advanced higher.

The latest crypto rally comes amid growing concerns about the state of the global banking industry after several global central banks said during the weekend they would inject cash into markets to boost liquidity. Meanwhile, the Swiss authorities orchestrated an emergency takeover of the embattled Swiss lender Credit Suisse by its rival UBS after a series of banking collapses this month.

But the sentiment toward digital asset funds remains contrarian to the rest of the crypto market, a similar situation line during the coronavirus outbreak in March 2020.

Germany and Canada led the outflows on a regional basis, registering $24.3 million and $12.8 million last week, respectively. The United States recorded minor outflows of just $0.4 million.

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