Market

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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Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.