Digital Asset Investment Products Saw Minor Outflows With $126 Million Last Week

Key Points:

• Digital asset investment products experienced minor outflows of $126 million last week.
• Ethereum faced significant outflows of $29 million, extending its fifth consecutive week of decline.
• Altcoins generally performed well, attracting inflows despite Solana witnessing $3.6 million in outflows.

Last week, digital asset investment products experienced minor outflows amounting to $126 million as investors appeared hesitant amid stalled positive price momentum.

Digital Asset Investment Products See Minor Outflows Amidst Market Caution

Although overall volumes increased slightly from $17 billion to $21 billion week-on-week, ETP/ETF activity dropped relative to the market, declining from 40% to 31% of total volumes on trusted exchanges over the last month, indicating cautious investor sentiment.

The US led in outflows of digital asset investment products with $145 million, trailed by Switzerland and Canada with $5.7 million and $6 million outflows, respectively. However, investors in Germany viewed recent price weaknesses as an opportunity, resulting in $29 million in inflows.

Altcoins Perform Well Despite Solana Outflows

Bitcoin encountered $110 million in outflows but maintained positive month-to-date inflows of $555 million. Short-bitcoin strategies, however, reversed a three-week trend of outflows, experiencing minor inflows of $1.7 million, likely capitalizing on recent price declines.

In addition, Bitcoin experienced its briefest decline in over a month, which contributed to a series of liquidations of speculative cryptocurrency positions and a collapse in lesser digital assets, including Polkadot, Solana, and Cardano.

According to Coinglass data, about $1.7 billion was liquidated in only one weekend. A surge in geopolitical risks on Friday shook the financial globe and caused investors to flee to the safest havens of the market, like Treasuries and the dollar.

Ethereum‘s challenges continued, with $29 million in outflows last week, highlighting a sustained trend of investor caution.

While Solana witnessed $3.6 million in outflows, altcoins generally performed well, with more niche names like Decentraland, Basic Attention Token, and LIDO attracting inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.