📉 Cryptocurrency Investment Landscape: A Week of Outflows 📉
The latest CoinShares report reveals that digital asset investment products have seen significant outflows, marking the fifth week in a row. Bitcoin remains the favored product despite leading the outflows, while Ethereum and other altcoins also experience withdrawals. Meanwhile, some altcoins like Solana, Cardano, and XRP are bucking the trend with modest inflows.
Continued Outflows for Digital Assets
Investment products linked to digital assets have faced consistent outflows for the fifth week in a row. With a total of $54 million withdrawn this past week, the year-to-date net inflows have now slimmed down to just $51 million.
Bitcoin Still in Favor, But Leads Outflows
Bitcoin continues to be the most popular digital asset for investors, boasting month-to-date inflows of $12 million. However, it also made up the majority of outflows, amounting to $45 million this week, reversing the previous week's short surge in short-Bitcoin inflows.
Ethereum and Other Altcoins See Outflows
Despite its strong investment fundamentals, Ethereum wasn't immune to the outflow trend, with $4.8 million being withdrawn. Other altcoins like BNB and MATIC weren't spared either, each experiencing outflows of $0.3 million.
Some Altcoins Buck the Trend
Interestingly, not all altcoins are following the broader market sentiment. Solana, Cardano, and XRP saw inflows amounting to $0.7 million, $0.43 million, and $0.13 million, respectively.
Regional Focus: United States Leads Outflows
From a geographical standpoint, the United States was the main driver of this negative sentiment, accounting for 77% of the outflows. Germany, Canada, and Sweden also had noticeable outflows.
A Silver Lining: Increase in Trading Volumes
Despite the prevailing negative sentiment, there was a 42% increase in trading volumes, which reached $1 billion for the week.
