Digital Asset Investment Products Sees Net Inflow Streak End After 11 Weeks

Key Points:

• A $16 million outflow interrupts an 11-week streak of consecutive inflows for digital asset investment products.
• The United States leads the outflow with $18 million, while Germany sees a $10 million outflow.
• Altcoins like Solana, Cardano, XRP, and Chainlink attract $21 million in inflows despite the digital asset investment products outflow.

Digital asset investment products recently saw a slight shift in investor sentiment as they experienced a total capital outflow of $16 million, ending an 11-week streak of consecutive inflows, according to data from CoinShares’ weekly report. 

11-Week Inflow Streak Snapped by $16M Outflow

Despite this, trading activity remained robust, surpassing the year-to-date average with a total volume of $3.6 billion for the week, compared to the average of $1.6 billion.

The capital outflow was primarily concentrated in the United States, which saw an outflow of approximately $18 million. Germany also experienced a minor outflow of $10 million.

In contrast, Canada and Switzerland continued to attract capital, with inflows of $6.9 million and $9.1 million, respectively. The mixed regional flow trend suggests that the shift is more indicative of profit-taking than a fundamental change in sentiment towards digital asset investment products.

Varied Capital Flows in Digital Assets: Altcoins Defy Trend

Bitcoin bore the brunt of the capital outflow, losing $33 million, while short Bitcoin products saw a minor outflow of $300,000. In contrast, altcoins experienced an inflow of $21 million, with Solana, Cardano, XRP, and Chainlink being the main beneficiaries, attracting $10.6 million, $3 million, $2.7 million, and $2 million, respectively. Ethereum and Avalanche saw minor outflows of $4.4 million and $1 million, respectively.

The positive sentiment towards blockchain equities continued, with substantial inflows of $122 million reported last week. This marks a significant trend, as the nine-week cumulative inflow reached $294 million, representing the largest run on record for blockchain stocks.

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