Insights on Digital Asset Investment Product Outflows and Inflows ๐
As per the latest report from CoinShares, digital asset investment products have seen outflows for the fourth consecutive week, amounting to a total of $251 million. This follows the outflow of $156 million in the previous week. However, Ethereum was an exception, breaking its seven-week streak of outflows and registering inflows worth $30 million.
ETF Outflows and Inflows ๐ธ
โ The newly issued exchange-traded funds (ETFs) in the United States witnessed substantial outflows amounting to $156 million last week.
โ This could be attributed to a recent 10% price drop triggering automatic sell orders, with the average purchase price estimated at $62,200 per Bitcoin since their launch.
โ Grayscale Investments LLC reported outflows of $277 million, while providers like Fidelity ETFs/USA and ARK 21 Shares/USA experienced outflows of $131 million and $84 million respectively.
โ However, unnamed providers reported significant inflows of $398 million.
โ The launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong saw inflows of $307 million in the first week of trading, a positive development amidst significant outflows.
Itโs important to note that outflows were not limited to the U.S. alone, with Canada, Switzerland, and Germany also experiencing significant outflows totaling $9.6 million, $9.8 million, and $7.3 million respectively.
Bitcoin and Ethereum Inflows ๐
โ Bitcoin faced outflows of $284 million last week, but Ethereumโs $30 million inflow provided some relief, breaking a seven-week streak of outflows.
โ Avalanche, Cardano, and Polkadot attracted investments, while several other altcoins also saw substantial inflows.
Hot Take ๐ฅ
Despite the overall outflows in digital asset investment products, Ethereum stood out with inflows of $30 million, breaking a seven-week streak of outflows. The ETF market saw significant outflows, particularly in the U.S., but the positive launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong brought in substantial inflows. Itโs essential to keep an eye on emerging trends in different regions to gain a comprehensive understanding of the market dynamics.
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