Apathetic Market Leads to $59 Million Outflows for Digital Asset Funds
Last week, digital asset funds experienced outflows of $59 million, contributing to the total outflows of $294 million in recent times. This represents 0.9% of total assets under management (AuM). Coinshares, a digital asset manager, attributes these outflows to concerns about regulatory uncertainties and the strength of the dollar. Additionally, trading volumes have significantly declined by 73% compared to the previous week, reaching just $754 million in the past seven days.
Bitcoin Bears the Brunt
The latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report reveals that Bitcoin suffered the most outflows, losing $69 million last week. On the other hand, short-Bitcoin investments experienced a significant influx of $15 million, aligning with increased regulatory uncertainty. Ethereum also experienced outflows of $4.8 million, making it the least favored digital asset among ETP investors this year. Blockchain equities also witnessed outflows of $10.8 million, marking the fifth consecutive week of outflows in this sector.
XRP Investment Products See Inflows
Despite the overall negative sentiment, XRP stands out as investment products tied to the crypto-asset attracted inflows of $0.7 million last week. This is likely due to the recent court victory against the SEC. XRP also saw a net inflow of $0.5 million during the week ending on August 25th.
Hot Take: Apathy and Regulatory Concerns Drive Outflows in Digital Asset Funds
The digital asset market continues to experience apathy, leading to significant outflows in digital asset funds. Concerns about regulatory uncertainties and the strength of the dollar have contributed to this sentiment. Bitcoin has been hit the hardest, with substantial outflows, while short-Bitcoin investments have seen influxes. Ethereum has also faced outflows, making it the least favored digital asset among ETP investors. However, XRP stands as an outlier, attracting inflows despite the negative sentiment, thanks to its recent court victory. Overall, the market remains cautious as regulatory concerns loom.
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