Institutional investors have kept on moving funds out of digitalย currency financing products inย theย 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.
Reportsย by CoinSharesโ latest Digital Investment Fund Flows report, the volume of digitalย currency financing product transactions amounted to $900 Million inย theย previous week, a wholeย lotย of 40 percent decline from the yearโs 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.
CoinSharesโ report details that Bitcoin, the flagship digitalย currency, was at the epicenter of negative sentiment, and experienced $33 Million in outflows that represent a toย continue of the tendency observed inย theย previous 5 weeks.
Onย theย brighterย side, there were likewise minor outflows of $1.3 Million from Short- Bitcoinย (BTC) โ an financing strategy that advantages from sliding Bitcoinย (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. Althoughย while some attribute this tendency to ongoing regulatory concerns and market volatility, others point toward broader macroeconomic factors that couldย be influencing investor sentiment.
Interestingly, amidst this downturn, cryptoย altcoins โ digitalย currencies other than Bitcoinย (BTC) โ have managed to buck the tendency, albeit with one notable exception. Ethereumย (ETH), the second- largest digitalย currency by marketย cap, informed an outflow of $1 Million. Nonetheless, other cryptoย altcoins, including Avalancheย (AVAX) and Litecoin, registered inflows of $700,000 and $300,00, respectively.
Blockchainย Tech equity ETFs, financing funds that track a basket of blockchain-based companiesโ stocks, recorded their Second consecutive week of minor outflows, shedding $2 Million last week.
As CryptoGlobe informed ย Mike McGlone, senior macro strategist at Bloomberg Intelligence, recently revealed he considers thereย is potential for a wholeย lotย of Bitcoinย (BTC) downturn that could see the digitalย currencyโs price fall back down to $7,000.
Inย theย meantime, Tetherย (USDT), the company behind the leading cryptoย stablecoin USDC, has made a strategic decision to invest a wholeย lotย of portion of its operating profits into Bitcoin.
Reportsย by Tetherโsย (USDT) notice, the company will initiate a policy of consistently allocating up to 15 percent of its net discovered operating profits toward purchasing Bitcoinย (BTC) (BTC).
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