Digital Asset Investment Products Experience Highest Outflow Since March
Digital asset investment products experienced a third consecutive week of outflows, with the latest weekly outflow reaching $435 million, the highest since March. According to CoinShares’ report, trading volumes in Exchange-Traded Products (ETPs) dropped to $11.8 billion last week, with Bitcoin prices declining by 6%.
The outflows were primarily focused on Bitcoin and Ethereum, with $423 million and $38 million leaving these top two cryptocurrencies, respectively. However, short Bitcoin investment products saw $1.3 million in inflows, indicating a growing interest in hedging or profiting from downward movements in BTC’s price.
Despite the bearish trend, several altcoins saw inflows, with multi-coin investment products attracting $7 million. Solana, Litecoin, Chainlink, Polkadot, XRP, and ADA also saw inflows ranging from $0.4 million to $4 million.
The US recorded the highest outflows at $388 million, with Grayscale experiencing $440 million in outflows, the lowest in nine weeks. However, year-to-date inflows in the US still stand at a record $13.6 billion. Germany, Canada, and Sweden also faced negative sentiment, with outflows ranging from $8.1 million to $32 million.
On the positive side, Switzerland and Brazil welcomed inflows of $5 million and $4 million, respectively, while Australia recorded modest inflows of $0.5 million. Despite the overall outflows, the digital asset market continues to show resilience and diversity in investor preferences.
