Investment Products in Digital Assets Witness Significant Weekly Outflow
Investment products in digital assets saw a substantial weekly outflow of $942 million, marking the end of a continuous seven-week streak of inflows totaling $12.3 billion. CoinShares has attributed this shift to investor hesitation.
Hesitant Investors Cause US ETF Inflows to Dip
The latest Digital Asset Fund Flows Weekly Report revealed that trading volumes in Exchange-Traded Products (ETPs) remained high, reaching $28 billion for the week. However, this figure was two-thirds lower than the previous week’s numbers. Despite a recent price correction leading to a $10 billion reduction in total assets under management (AuM), they still stand above previous cycle highs at $88 billion.
– CoinShares blames recent price correction on investor hesitancy
– Reduced inflows into new ETF issuers in the US amounted to $1.1 billion
– Substantial outflows of $2 billion from incumbent Grayscale occurred last week
– Poor sentiment not limited to the US – Sweden, Switzerland, Hong Kong, and Germany also experienced outflows
– Brazil and Canada saw inflows totaling $9 million and $8.4 million, respectively
– Australia settled for $1.4 million in weekly inflows
Bitcoin Dominated 96% of The Flows
Data from CoinShares revealed that investments in Bitcoin products saw outflows of $904 million, accounting for 96% of the total flows. Products allowing traders to short Bitcoin only experienced $3.7 million in weekly outflows.
– Ethereum, Solana, and Cardano products also experienced outflows during the same period
– Altcoin market performed positively, with net inflows reaching $16 million
– Polkadot, Avalanche, Litecoin, and XRP received inflows over the past week
Hot Take: Importance of Investor Sentiment in Crypto Market
Understanding the impact of investor sentiment on the crypto market is crucial. Hesitant investors can lead to significant outflows, affecting the overall inflow trend. It’s essential to monitor global market sentiment to anticipate potential shifts in investment patterns. Investors must stay informed and make calculated decisions based on market trends and sentiment.
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