Digital Asset Investment Products Experience Setback: Outflows Reach $126 Million
Digital asset investment products experienced a significant setback last week, with outflows totaling $126 million, according to CoinShares’ latest weekly report. Bitcoin led the charge with 87% of the total net flow, reflecting investors’ cautious stance following a decline in market momentum.
CoinShares Head of Research James Butterfill noted a decrease in ETF/ETP trading activity compared to the broader market, with total volume reaching only 31% last week. Despite this, there was a slight increase in volume from $17 billion to $21 billion week-on-week.
Ethereum also faced challenges, seeing five consecutive weeks of outflows totaling $28.7 million. This negative trend has resulted in a month-to-date flow of negative $51.3 million and a year-to-date flow of only $23 million, potentially eroding gains for the year.
Bitcoin investment products such as Grayscale GBTC, ProShares BITO, and Purpose ETF drove the outflows, nearly reaching $1 billion in cumulative flows. In contrast, BlackRock IBIT, Fidelity FBTC, and Ark 21Shares ARKB’s inflows only partially offset the outflows, leaving Bitcoin products with a total outflow of $110 million for the week.
Regionally, the US saw the largest outflows at $145 million, with Switzerland and Canada following at $5.7 million and $6 million, respectively. However, investors in Germany viewed recent price weakness as an opportunity, resulting in $29 million in inflows last week.
Solana also experienced outflows of $3.6 million, while multi-asset products recorded $5.6 million in outflows. On the other hand, Short Bitcoin saw a reversal in its trend with $1.7 million in inflows after three consecutive weeks of outflows, indicating a resurgence of bearish sentiment amid market volatility.
Despite the challenges faced by major cryptocurrencies, several altcoins saw positive flows. Litecoin, XRP, Polkadot, Decentraland, Basic Attention Token, and LIDO attracted inflows ranging from $300,000 to $4.9 million, signaling continued investor interest in the digital asset space.
Overall, the latest CoinShares report highlights the dynamic nature of the digital asset market, with investors navigating shifting trends and market conditions to make informed investment decisions.
