Bitcoin, the first and most popular cryptocurrency, experienced its first outflow of funds in six weeks during the period of April 14-21. According to CoinShares, a digital asset investment firm, more funds flowed out of digital asset investment products than in, seeing a total outflow of $30 million in the same period. The three hardest-hit providers of digital asset investment products were CoinShares XBT, ProShares and 3iQ. This outflow could be due to profit-taking, as there had been no major macroeconomic triggers that could otherwise explain the dip. Additionally, this could mean a tougher climb back to it's psychologically-significant mark of $30,000.

Ethereum was the odd one out, however, as it bucked this trend and saw an impressive net inflow of $17 million instead. This was due to the successful completion of its "Shapella" upgrade and the fact that validators on its proof-of-stake network can now withdraw their staked ETH if they wish. The majority of this inflow can be attributed to investors from Europe, who sponsored the milestone legislation on cryptocurrency in the area.

On the other hand, investors from North America could be responsible for the BTC outflow, as it saw a total outflow of $54 million. Butterfill speculates that this could be due to regulatory uncertainty in the US, causing investors to be more wary of investing directly in cryptocurrencies. Nonetheless, Germany has seen optimistic sentiment when it comes to Bitcoin, an attitude likely driven by their more favorable tax law which states that offloaded cryptocurrency after 12 months are not subject to capital gains.



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