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Digital Asset Investment Products Saw Their First Outflow of Funds in Four Weeks

2 hours ago - Around 2 mins mins to read

Key Points:

  • Digital asset investment products saw $528 million in outflows due to recession fears and geopolitical concerns.
  • The US experienced the largest outflows at $531 million, while Canada and Switzerland saw inflows of $17 million and $28 million, respectively.
  • Bitcoin had $400 million in outflows, ending a five-week inflow streak, while Ethereum faced $146 million in outflows.
Digital asset investment products recorded outflows of $528 million last week, the first weekly outflow in four weeks.
Digital Asset Investment Products Saw Their First Outflow of Funds in Four Weeks

Read more: Digital Asset Investment Products See Mixed Results Amid Record Inflows 

$528 Million Outflows from Digital Asset Investment Products

That decline was likely fanned by concerns over a US recession and broader market sell-offs across various asset classes that are exacerbating an already precarious geopolitical situation.

Trading volumes in ETPs reached $14.8 billion and formed a below-average 25% market share. Total ETP AUM followed through with the recent price correction, falling $10 bln.

The lion’s share of the outflows was regionally US-centric at $531 million. Germany and Hong Kong had outflows amounting to $12 million and $27 million, respectively. Canada and Switzerland capitalized on the market weakness with inflows of $17 million and $28 million, respectively.

Bitcoin and Ethereum: Diverging Trends Amidst Market Correction

Heavy outflows of $400 million were seen in Bitcoin, with the first price drop after five weeks of consecutive inflows. In contrast, short-Bitcoin products saw their first major inflows since June at $1.8 million.

Ethereum also saw $146 million of outflows, bringing the total net outflows since the launch of US Ether ETFs to $430 million. This total figure disguises positive $430 million inflows into newly launched US ETFs offset by $603 million of outflows from the Grayscale Ethereum Trust. There were small outflows in European ETPs.

Blockchain equities continued to see outflows to the tune of $18 million last week. This aligns with the broader outflows witnessed in tech-related ETFs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Bitcoin

digital asset

Digital Asset Investment Products

Ethereum

Grayscale

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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.
News

Digital Asset Investment Products Saw Their First Outflow of Funds in Four Weeks

Key Points:

  • Digital asset investment products saw $528 million in outflows due to recession fears and geopolitical concerns.
  • The US experienced the largest outflows at $531 million, while Canada and Switzerland saw inflows of $17 million and $28 million, respectively.
  • Bitcoin had $400 million in outflows, ending a five-week inflow streak, while Ethereum faced $146 million in outflows.
Digital asset investment products recorded outflows of $528 million last week, the first weekly outflow in four weeks.
Digital Asset Investment Products Saw Their First Outflow of Funds in Four Weeks

Read more: Digital Asset Investment Products See Mixed Results Amid Record Inflows 

$528 Million Outflows from Digital Asset Investment Products

That decline was likely fanned by concerns over a US recession and broader market sell-offs across various asset classes that are exacerbating an already precarious geopolitical situation.

Trading volumes in ETPs reached $14.8 billion and formed a below-average 25% market share. Total ETP AUM followed through with the recent price correction, falling $10 bln.

The lion’s share of the outflows was regionally US-centric at $531 million. Germany and Hong Kong had outflows amounting to $12 million and $27 million, respectively. Canada and Switzerland capitalized on the market weakness with inflows of $17 million and $28 million, respectively.

Bitcoin and Ethereum: Diverging Trends Amidst Market Correction

Heavy outflows of $400 million were seen in Bitcoin, with the first price drop after five weeks of consecutive inflows. In contrast, short-Bitcoin products saw their first major inflows since June at $1.8 million.

Ethereum also saw $146 million of outflows, bringing the total net outflows since the launch of US Ether ETFs to $430 million. This total figure disguises positive $430 million inflows into newly launched US ETFs offset by $603 million of outflows from the Grayscale Ethereum Trust. There were small outflows in European ETPs.

Blockchain equities continued to see outflows to the tune of $18 million last week. This aligns with the broader outflows witnessed in tech-related ETFs.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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