Digital Asset Investment Products Experience 5th Consecutive Week of Outflows, Reaching $232 Million

Digital asset investment products have experienced another week of outflows, according to the latest CoinShares weekly report released on the 22nd. The total outflows reached $32 million, marking the fifth consecutive week of negative sentiment and bringing the cumulative outflows to $232 million. This represents around 0.7% of the total assets under management.

The majority of the outflows were observed in Bitcoin, accounting for $33 million and continuing the trend seen over the past five weeks. Additionally, there were minor outflows of $1.3 million in short-bitcoin investment products. The combined outflows for both long and short Bitcoin investment products now stand at $235 million over the course of the past five weeks. The report does not provide clear reasons for the coordinated negative sentiment surrounding these products.

In contrast, altcoins, with the exception of Ethereum which saw a modest outflow of $1 million, experienced inflows. Notably, Avalanche and Litecoin were the most notable altcoins that saw inflows, with $0.7 million and $0.3 million respectively. Amid this negative trend, XRP has shown resilience by recording positive inflows. In the past week alone, XRP witnessed inflows of over $200,000, contributing to a cumulative inflow of $3 million since the beginning of the year.

Source: Coinshare

The report also highlights that digital asset investment products had a total volume of $900 million during the week, which is 40% below this year’s average. Furthermore, volumes for the broader market on trusted exchanges hit their lowest level since late 2020, totaling $20 billion for the week.

In terms of regional trends, Germany accounted for the majority of the outflows, totaling $24 million, representing 73% of all outflows. The United States and Switzerland followed with outflows of $5 million and $3.3 million respectively. On the other hand, Brazil saw minor inflows of $1.3 million, while Canada recorded inflows of $2.2 million.

In the realm of blockchain equity ETFs, there were minor outflows for the second consecutive week, totaling $2 million.

These developments reflect the ongoing volatility and uncertainty in the digital asset market. Investors continue to display caution and mixed sentiment towards various cryptocurrencies, with Bitcoin experiencing significant outflows while some altcoins witness inflows. As the market evolves, it remains to be seen whether this pattern will continue or if new factors will emerge to shape investor sentiment in the digital asset space.

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