Weekly Recap: Crypto Asset Investment Products Experience Outflows for Third Consecutive Week

Despite positive sentiment towards cryptocurrencies, digital asset investment products have seen outflows for the third week in a row, totaling $30 million. While Ethereum continued to experience outflows, there are signs that investor sentiment towards Bitcoin may be shifting.

Key Highlights:

CoinShares’ Digital Asset Fund Flows Weekly report shows $30 million in outflows
Trading volumes increased by 43% to $6.2 billion
Grayscale recorded $153 million in outflows
Multi-asset and Bitcoin ETPs led inflows with $18 million and $10 million respectively

Changing Sentiment Towards Bitcoin:

Although most providers recorded minor inflows, Grayscale’s outflows overshadowed these gains. However, there are indications that sentiment towards Bitcoin is changing, with positive inflows for Bitcoin ETPs.

Altcoins Seeing Inflows:

Solana received $1.6 million in inflows
Litecoin recorded $1.4 million in inflows
Chainlink and XRP also saw inflows of $0.6 million and $0.3 million respectively

Ethereum Facing Largest Outflows Since August 2022:

Investment products based on Ethereum saw significant outflows, totaling $61 million for the week. This brings the two-week outflow total to $119 million, making Ethereum the worst-performing asset in terms of net flows this year.

Regional Overview:

The US leads with inflows of $143 million
Brazil and Australia follow with $7.6 million and $3 million in weekly inflows
Germany, Hong Kong, Canada, and Switzerland faced significant outflows

Blockchain Equities Facing Challenges:

Despite the positive sentiment towards cryptocurrencies, blockchain equities have seen outflows of $545 million, representing 19% of assets under management.

Hot Take:

The crypto market continues to experience fluctuations in investor sentiment, with Bitcoin showing signs of resilience while Ethereum faces outflows. As the market evolves, it’s essential for investors to stay informed and adapt to changing trends.

Sources:
CoinShares Report