Bearish Trend Persists: Coinshares Sees $17M Outflows From Digital Asset Products

Key Points:

• Coinshares experienced minor outflows of $17m last week, marking the fourth consecutive week of negative sentiment.
• Bitcoin outflows continued for the fourth consecutive week, totaling $20m, while short-bitcoin saw inflows of $1.8m for a third week.
• Sentiment has flipped regionally, with the US seeing inflows of $7.6m and Europe seeing outflows of $23m.
• Altcoins, including Ethereum and Solana, saw minor inflows of $0.7m and $0.34m, respectively, while Binance and Cosmos saw outflows.

The latest Digital Asset Fund Flows Weekly Report of Coinshares shows that digital asset investment products saw minor outflows totaling US$17m last week, marking the fourth consecutive week of negative sentiment. Bitcoin continues to be the focus, with outflows for the fourth consecutive week totaling US$20 million, while short-bitcoin saw inflows for a third week totaling $1.8 million.

Interestingly, volumes across investment products were low at US $844 million for the week, but a similar situation was seen for the entire Bitcoin market volumes, averaging US $57bn, 15% lower than usual.

Regionally, sentiment appears to have flipped, with the US seeing inflows totaling US $7.6 million, while Europe saw outflows of US $23 million. Despite the recent inflows into short-bitcoin, total assets under management (AuM) have only risen by 4.2% year-to-date compared to long-bitcoin AuM, which has risen by 36%.

There were minor inflows in altcoins last week, with Ethereum and Solana seeing $0.7 million and $0.34 million, respectively. However, Binance and Cosmos saw outflows of US $0.38 million and US $0.21 million, respectively.

In contrast, blockchain equity investors remained bullish, with inflows of $1.6m last week. The poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class. While there has been a recent uptick in positive regulatory developments, such as the US SEC’s approval of a Bitcoin futures ETF, there is still a significant amount of uncertainty and potential risk in the digital asset market. Investors must remain vigilant and informed as the market continues to evolve.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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