| Key Points: – Digital asset investment products saw a fifth consecutive week of outflows, totaling $1.7 billion. – Binance suffered a significant investor exit, reducing its assets under management to $15 million. |
According to CoinShares, digital asset investment products experienced a fifth consecutive week of outflows, totaling $1.7 billion last week, marking the longest stretch of sustained withdrawals since records began in 2015.
Over the past 17 days, investors have consistently pulled funds, bringing total outflows during this period to $6.4 billion. Despite the ongoing downturn, year-to-date inflows remain positive at $912 million.
Digital Asset Investment Products Faces Record Outflows Amid Investor Uncertainty
Bitcoin was the hardest hit, with outflows of $978 million last week, pushing total Bitcoin outflows over the past five weeks to $5.4 billion. At the time of writing, BTC is trading at around $83,500 with a week-on-week increase from the $78,600 price range.
Ethereum also recorded significant withdrawals, with investors pulling $175 million. Solana saw more modest outflows of $2.2 million, while XRP defied the trend, attracting $1.8 million in inflows. Meanwhile, short-bitcoin investment products saw $3.6 million in outflows as investors exited bearish positions.
The broader crypto market downturn has led to a substantial decline in total assets under management (AuM), which have fallen by $48 billion. Blockchain equities also faced pressure, registering $40 million in outflows last week, further reflecting waning investor confidence in the digital asset invetment.
Inflation Eases, But Economic Concerns Weigh on Crypto Sentiment
Macroeconomic concerns have played a role in shaping investor sentiment. Last week’s Consumer Price Index (CPI) data indicated a softening in inflation, with a 2.8% annual increase as of February, down from 3% in January. Monthly inflation also slowed, rising 0.2% compared to the 0.5% increase in January.
Despite the cooldown, lingering inflation worries and ongoing trade concerns, exacerbated by former President Donald Trump’s tariff policies, continue to influence market dynamics.
Binance, the world’s largest cryptocurrency exchange, faced challenges of its own, with a key seed investor exit drastically reducing its assets under management to just $15 million.
However, the exchange received a major boost with a $2 billion investment from Abu Dhabi-backed MGX. This move marks Binance’s first institutional investment and one of the largest ever in the crypto industry.
| 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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