$LTC and $XRP Attract Investors While Crypto Funds Suffer Fifth Week of Losses

$LTC and $XRP Attract Investors While Crypto Funds Suffer Fifth Week of Losses

Institutional investors continue to move funds out of cryptocurrency investment products, resulting in a fifth consecutive week of outflows totaling $232 million, with Bitcoin at the epicenter of negative sentiment.

Institutional investors have kept on moving funds out of digital currency financing products in the previous week, marking a fifth consecutive week of outflows that has now reached a cumulative $232 Million. The outflow represents a 0.7 percent decrease in total assets under management.

Reports by CoinShares’ latest Digital Investment Fund Flows report, the volume of digital currency financing product transactions amounted to $900 Million in the previous week, a whole lot of 40 percent decline from the year’s average. Similarly, trading volumes across trusted exchanges in the broader market plunged to a new low since late 2020, standing at a mere $20 Billion for the week.

CoinShares’ report details that Bitcoin, the flagship digital currency, was at the epicenter of negative sentiment, and experienced $33 Million in outflows that represent a to continue of the tendency observed in the previous 5 weeks.

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On the brighter side, there were likewise minor outflows of $1.3 Million from Short- Bitcoin (BTC) – an financing strategy that advantages from sliding Bitcoin (BTC) prices. Combined, these two types of financing products have seen outflows totaling $235 Million over the last 5 weeks.

The reason behind the negative sentiment toward both long and short financing products remains a topic of speculation between analysts. Although while some attribute this tendency to ongoing regulatory concerns and market volatility, others point toward broader macroeconomic factors that could be influencing investor sentiment.

Interestingly, amidst this downturn, crypto altcoins – digital currencies other than Bitcoin (BTC) – have managed to buck the tendency, albeit with one notable exception. Ethereum (ETH), the second- largest digital currency by market cap, informed an outflow of $1 Million. Nonetheless, other crypto altcoins, including Avalanche (AVAX) and Litecoin, registered inflows of $700,000 and $300,00, respectively.

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Blockchain Tech equity ETFs, financing funds that track a basket of blockchain-based companies’ stocks, recorded their Second consecutive week of minor outflows, shedding $2 Million last week.

As CryptoGlobe informed  Mike McGlone, senior macro strategist at Bloomberg Intelligence, recently revealed he considers there is potential for a whole lot of Bitcoin (BTC) downturn that could see the digital currency’s price fall back down to $7,000.

In the meantime, Tether (USDT), the company behind the leading crypto stablecoin USDC, has made a strategic decision to invest a whole lot of portion of its operating profits into Bitcoin.

Reports by Tether’s (USDT) notice, the company will initiate a policy of consistently allocating up to 15 percent of its net discovered operating profits toward purchasing Bitcoin (BTC) (BTC).

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