Digital Asset Investments Experience $100 Million Outflows Amidst Altcoin Optimism
- $107 million exits digital assets as Bitcoin sees a major outflow, but altcoins like Solana surge with strong investor interest.
- Ethereum and Bitcoin see $117 million in combined outflows, but positive sentiment drives Solana’s $9.5 million inflow, bucking the trend.
- Germany and Canada witness significant outflows, while the overall summer trading slowdown affects both investment products and exchange volumes.
In a week marked by shifting sentiments, digital asset investment products experienced significant outflows, amounting to a total of $107 million, according to CoinShares reported.
The trend of profit-taking has gained momentum in recent weeks, primarily affecting Bitcoin, which saw outflows totaling $111 million. This constitutes the most substantial weekly outflow since March.
Despite this, a noteworthy positive development has been observed in the sentiment surrounding altcoins. This sentiment shift managed to counterbalance the outflows in Bitcoin and Ethereum. Notably, Solana emerged as a frontrunner, attracting the largest inflows of $9.5 million—a feat not seen since March 2022.
Interestingly, Ethereum also experienced outflows, with a sum of $6 million flowing out of the asset. When combined with Bitcoin’s outflows, the total reduction in investment in these two major cryptocurrencies reached $117 million for the past week.
Geographically, the outflows were concentrated within two ETP (Exchange Traded Product) providers in Germany and Canada, where $71 million and $29 million were withdrawn, respectively.
What adds complexity to this scenario is the overarching summer doldrums, as reflected in weekly trading volumes for investment products. These volumes have been noted to be 36% lower than the year-to-date average.
Moreover, on the broader on-exchange market, the decline in volumes is more pronounced, showing a 62% decrease relative to the year-to-date average.
In the realm of alternative cryptocurrencies, XRP and Litecoin experienced modest inflows of $0.5 million and $0.46 million, respectively. On the flip side, Uniswap and Cardano saw outflows amounting to $0.8 million and $0.3 million, respectively.
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