Bitcoin Outflows Continue as Regulatory Concerns Weigh on Investors: CoinShares

The ongoing regulatory concerns surrounding digital assets have been highlighted once again as CoinShares reports that digital asset investment products experienced minor outflows of US$17m last week. This marks the fourth consecutive week of negative sentiment for the asset class.

Bitcoin, which remains the focus of investor attention, saw outflows for the fourth consecutive week totalling US$20m. Short-bitcoin, on the other hand, saw inflows for a third week totalling US$1.8m. Despite these inflows, total assets under management (AuM) have only risen by 4.2% year-to-date, compared to long-bitcoin AuM which has increased by 36%.

The poor sentiment towards digital asset investment products likely represents continued investor concerns over regulatory uncertainty for the asset class. In recent weeks, there has been increased scrutiny of digital assets by regulators in various countries, including the United States and China.

Interestingly, sentiment appears to have flipped regionally, with the US seeing inflows totalling US$7.6m while Europe saw outflows of US$23m. Minor inflows were seen in altcoins such as Ethereum and Solana, while Binance and Cosmos saw outflows.

Despite the negative sentiment in digital asset investment products, blockchain equity investors remained bullish with inflows of US$1.6m last week. This suggests that investors may be more confident in blockchain technology as a whole, rather than just specific digital assets.

Overall, the continued outflows from digital asset investment products highlight the ongoing regulatory concerns surrounding the asset class. As regulators around the world continue to scrutinize digital assets, investors may remain hesitant to invest until there is more clarity and certainty surrounding the regulatory environment.

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