CoinShares report indicates that last week, Bitcoin ETP saw net inflows of $10 million, while the outflow of funds shorting Bitcoin increased to $4.2 million, suggesting a shift in market sentiment. Additionally, the Coinbase Premium Index dropped to -0.19 last week, marking the lowest level since November 2022, potentially signaling an upcoming rebound in Bitcoin prices.
After hitting rock bottom, signs of a positive turnaround in Bitcoin sentiment have emerged. The Bitcoin spot ETF ended a streak of 7 consecutive days of net outflows on the 25th, with net inflows reaching $73 million on the 28th, marking the highest single-day inflow volume in two weeks.
According to flow data from digital asset investment products tracked by CoinShares, despite three consecutive weeks of outflows, the total outflow decreased significantly from $598 million and $582 million in the previous two weeks to just $30 million in the most recent week.
In its report, CoinShares stated that compared to the previous weeks, most digital asset issuers experienced minor inflows, which were offset by Grayscale’s $153 million outflow. In terms of products, diversified assets and Bitcoin ETP led with net inflows of $18 million and $10 million respectively, while the total outflows for shorting Bitcoin increased to $4.2 million last week, indicating a potential shift in market sentiment.
A series of altcoins also saw inflows, with notable ones being Solana ($1.6 million) and Litecoin ($1.4 million). However, Ethereum experienced its largest outflow since August 2022, totaling $61 million, resulting in outflows of $119 million over the past two weeks, making it the worst performing asset in terms of net flow for the year so far.
In terms of regions, inflows were $43 million for the United States, $7.6 million for Brazil, and $3 million for Australia. Negative sentiment prevailed in Germany, Hong Kong, Canada, and Switzerland, with outflows of $29 million, $23 million, $14 million, and $13 million respectively.
Apart from indicating a potential reversal in Bitcoin sentiment, the Coinbase Premium Index dropped to nearly -0.19 last week, the lowest level since the FTX collapse in November 2022. David Lawant, Research Director at the cryptocurrency trading platform FalconX, added that such negative values of the Coinbase Premium Index have historically coincided with near-term price bottoms, leading to significant rebounds in BTC prices in the following months.