Weekly crypto asset outflows reach highest since late December

Despite bitcoin's ( BTC-USD ) double-digit percentage return last week, outflows from digital asset investment products totaled $32M, marking the largest weekly capital flight since late December 2022, according to a recent CoinShares report. Outflows reached as high as $62M mid-way through the week ended Feb. 17, though sentiment improved by Friday with inflows of $30M. While last week's overall negative tone among exchange-traded product investors was not expressed in bitcoin's ( BTC-USD ) price appreciation, the upswing pushed total assets under management to their highest level since August 2022, at $30B, the report noted. "We believe this is due to ETP investors being less optimistic on recent regulatory pressures in the US relative to the broader market." Of course, bitcoin ( BTC-USD ) accounted for a majority of the negative sentiment, with outflows of almost $25M. On top of that, short-bitcoin products experienced $3.7M of inflows. Across the board, sentiment was "very mixed," CoinShares said . Some of the major tokens that saw outflows included ethereum ( ETH-USD ) ($7.2M), cosmos ( ATOM-USD ) ($1.6M), polygon ( MATIC-USD ) ($800K) and avalanche ( AVAX-USD ) ($500K). By contrast, Aave ( AAVE-USD ), fantom ( FTM-USD ) and binance coin ( BNB-USD ) saw inflows of up to $360K. Seeking Alpha contributor Kennan Mell said he continues to hold bitcoin ( BTC-USD ) as the "rapid adoption" of the network overshadows the token's recent price swoon.