CoinShares Reports Nearly $500 Million in Crypto Fund Outflows in 9-Week Period

CoinShares Reports Nearly $500 Million in Crypto Fund Outflows in 9-Week Period


Outflows from Cryptocurrency Exchange-Traded Products Reach $455 Million

According to a report from asset manager CoinShares, outflows from cryptocurrency exchange-traded products (ETPs) have reached $455 Million in the previous nine weeks. And once shares of these funds fall below their target prices, they sell off digital currencies, leading to outflows. This indicates a negative sentiment towards cryptocurrencies.

Bitcoin (BTC) Dominates Outflows

Past week, there were outflows of $54 Million, making it the eighth out of the last nine weeks to experience outflows. Bitcoin (BTC) accounted for 85% of all outflows from ETPs, with over $45 Million worth of Bitcoin (BTC) sold into the market by ETPs. Ether funds likewise saw outflows of approximately $5 Million during the same period.

Altcoins Show Several Resilience

Regardless of the overall outflows, certain ETPs representing altcoins performed well. Solana (SOL) ETPs saw net inflows of $700,000, Cardano (ADA) gained $430,000, and XRP Ripple (XRP) (XRP) added $130,000.

READ NOW
Hottest Crypto Coins on DEXTools: Lybra, Pepe, and Wall Street Memes

Regional Origin of Outflows

The  United States was in charge of 77% of the outflows from cryptocurrency ETPs. Germany, Canada, and Sweden likewise contributed significantly to the outflow volume.

Challenges for Cryptocurrency ETPs in the US

Cryptocurrency ETPs offer a convenient way for traditional investors to access digital assets. Nonetheless, the issuance of a spot Bitcoin (BTC) exchange-traded fund has faced regulatory and legal barriers in the United States. The Securities and Exchange Commission (SEC) denied VanEck’s proposition for a Bitcoin (BTC) Trust in March, and a federal appeals court ruled against the SEC’s denial of a Bitcoin (BTC) ETP proposition from Grayscale in August.

READ NOW
Top 6 Affordable Cryptocurrencies to Purchase Below $1 in September 2023

Hot Take: Negative Sentiment Persists as Cryptocurrency ETP Outflows Continue

The recent report from CoinShares outlines the persistent negative sentiment towards digital currencies, as outflows from cryptocurrency exchange-traded products have reached $455 Million in the previous nine weeks. Bitcoin (BTC) remains the dominant contributor to these outflows, with Ether likewise experiencing whole lot of selling pressure. Nonetheless, some altcoins have shown resilience, attracting net inflows. The  United States accounts for the bulk of these outflows, indicating ongoing challenges for cryptocurrency ETPs in the country. Regardless of the obstacles, cryptocurrency ETPs remain an attractive option for traditional investors looking to enter the digital asset market.

READ NOW
Nigerian Crypto Exchange Successfully Secures Funding to Compensate Users After Security Breach
Author – Contributor at | Website

Coinan Porter stands as a notable crypto analyst, accomplished researcher, and adept editor, carving a significant niche in the realm of cryptocurrency. As a skilled crypto analyst and researcher, Coinan’s insights delve deep into the intricacies of digital assets, resonating with a wide audience. His analytical prowess is complemented by his editorial finesse, allowing him to transform complex crypto information into digestible formats.

READ NOW
Implementing Blockchain-Based Digital ID for Millions of Citizens in Buenos Aires
Read Disclaimer
This page is simply meant to provide information. It does not constitute a direct offer to purchase or sell, a solicitation of an offer to buy or sell, or a suggestion or endorsement of any goods, services, or businesses. Lolacoin.org does not offer accounting, tax, or legal advice. When using or relying on any of the products, services, or content described in this article, neither the firm nor the author is liable, directly or indirectly, for any harm or loss that may result. Read more at Important Disclaimers and at Risk Disclaimers.




Follow us

Latest Crypto News

Share via
Share via
Send this to a friend