Key Takeaways
- Weekly outflows of $9 million in digital asset investment products continue for the 6th week.
- Europe sees inflows of $16 million as an opportunity amid regulatory concerns, while the US withdraws $14 million.
- Selective investment in altcoins, with $0.66 million into XRP and $0.31 million into Solana, as Ethereum and multi-asset products face challenges.
In an interesting turn of events, for the sixth week in a row, there have been withdrawals of $9 million from digital asset investment products. However, that’s not all. Interestingly, the sentiment towards the crypto market has varied regionally, with Europe experiencing inflows of $16 million as investors perceived recent regulatory setbacks as a chance. Conversely, US investors have withdrawn $14 million. In the altcoin sector, investors displayed selectivity, directing $0.66 million and $0.31 million of inflows toward XRP and Solana, respectively. Let’s take a look at more details relating to the digital asset fund flows weekly report.
The Findings
According to the report, Bitcoin has experienced minor outflows for the third consecutive week, amounting to $6 million. On the other hand, short-bitcoin products have also seen outflows of $2.8 million. Moreover, there has been a $15 million inflow into short-bitcoin during a single week this month. However, that appears to be an isolated occurrence since there have been outflows equivalent to 78% of assets under management (AuM) over the past 22 weeks. This suggests that investors are persistently abandoning their short positions.
Bitcoin counterpart Ethereum, however, continues to face challenges, with outflows for the sixth consecutive week totaling $2.2 million. Further, multi-asset investment products have also seen modest but consistent outflows, accumulating to $32 million for the year so far.
However, it’s noteworthy that investors are becoming more selective in the altcoin space, with ongoing inflows of $0.66 million into XRP and $0.31 million into Solana, indicating a preference for certain alternative cryptocurrencies.
Furthermore, last week, digital asset investment products experienced their sixth consecutive week of outflows, amounting to a total of $9 million. During the week, trading volumes remained subdued at $820 million, significantly falling short of the year’s average of $1.3 billion. This aligns with the broader trend of low trading volumes observed in the digital asset market.
In this regard, it can be speculated that regulatory concerns may be affecting market behavior; however, concrete proof of this notion is currently hard to find. With the recession taking over globally, there could be a multitude of reasons for this behavior. Let’s see how the next week unfolds.
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