- Digital asset investment products saw a significant outflow of funds, reaching $168 million, the largest since March 2023.
- Bitcoin investment products accounted for the majority of the outflows, with a net outflow of $149 million.
- The negative sentiment may be due to delays in the approval process for a spot-based Bitcoin ETF in the US.
The data from CoinShares’ weekly report shows that digital asset investment products experienced a significant outflow of funds last week, reaching a total of $168 million.
This represents the largest outflow since the US regulatory crackdown on exchanges in March 2023. The outflows were not limited to a specific geographical area, indicating a broad-based negative sentiment among investors.
Bitcoin investment products accounted for the majority of the outflows, with a total net outflow of $149 million. On the other hand, Ethereum investment products saw a total outflow of $16.8 million.
The report suggests that the negative sentiment may be a result of investors realizing that the launch of a spot-based Bitcoin exchange-traded fund (ETF) in the US may take longer than anticipated. The US Securities and Exchange Commission (SEC) recently announced delays in the approval process for Bitcoin ETFs.
In terms of geographical breakdown, Germany and Canada saw the most significant outflows, with $68 million and $61 million respectively.
While Bitcoin has experienced consistent outflows in recent weeks, the overall flows for the year remain positive at $265 million. Investors have been selling their short positions, with $4 million in outflows last week. This trend has persisted for the past 18 weeks, accounting for 89% of total assets under management (AuM).
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