Digital Asset Investment Products See Outflows, but Minor Compared to Prior Weeks
According to CoinShares, digital asset investment products experienced a total outflow of $6.5 million last week, marking a reversal from the previous four weeks of inflows. However, the outflow is relatively small compared to the $742 million of inflows during the prior four weeks.
Main Breakdown:
– Outflow of $6.5 million from digital asset investment products last week
– Prior four weeks saw $742 million of inflows
– Bitcoin had the largest outflows, with $13 million leaving funds and products
– Short BTC investment products saw outflows for the 13th consecutive week, totaling $5.5 million
– Trading volumes were below the year-weekly average, at $1.2 billion
Pro Investors Switch to ETH Funds
Despite the negative sentiment in the market, professional traders have shifted their focus from Bitcoin to Ethereum. ETH-based funds saw an inflow of $6.6 million for the week, indicating a potential turnaround in sentiment. Ripple-related funds also saw $2.6 million of inflows following the firm’s partial victory against the SEC.
Inflows for Ripple, Solana, Uniswap, and Polygon
In addition to Ethereum, Ripple-related funds received $2.6 million of inflows. Other cryptocurrencies such as Solana, Uniswap, and Polygon also saw inflows totaling $1.1 million, $0.7 million, and $0.7 million, respectively.
Crypto Market Continues to Languish
The overall crypto market remains stagnant, with low volatility, volumes, and liquidity. The total market cap has dropped 1.4% to $1.21 trillion, and Bitcoin prices have dipped 2.3% to their lowest level in over a month. Ethereum and most altcoins are also experiencing downward movements.
Hot Take: Crypto Investors Nervous Amidst Market Volatility
While the outflow from digital asset investment products is relatively minor compared to previous weeks, it reflects the nervousness and uncertainty among crypto investors. The shift in sentiment towards Ethereum and the partial victory for Ripple-related funds may indicate a potential turnaround, but the overall market continues to languish. With low volumes and liquidity, investors should proceed with caution in this volatile environment.
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