The market remains in an “apathetic” state, with digital asset funds experiencing outflows totaling $59 million last week, bringing the total outflows in this streak to $294 million. This represented 0.9% of total assets under management (AuM).
Digital asset manager Coinshares attributed these movements primarily to ongoing concerns about the regulatory environment for the asset class and the recent strength of the dollar. Additionally, trading volumes saw a substantial decline, plummeting by 73% compared to the previous week, reaching just $754 million for the past seven days.
Bitcoin Bears the Brunt
According to the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report, the sentiment remains poor, as evidenced by inflows seen in short investment products during the same period.
Bitcoin took the hardest hit, recording $69 million in outflows in last week. On the other hand, short-Bitcoin investments experienced their most significant weekly influx since March 2023, amounting to $15 million. CoinShares pointed out that this timing aligns with the increased regulatory uncertainty seen in March when similar inflows occurred.
Ethereum did not escape the negative sentiment either, registering outflows amounting to $4.8 million. This extends the year-to-date outflows to $108 million, accounting for 1.6% of Assets under Management (AuM), marking it as the least favored digital asset among ETP investors this year.
Meanwhile, blockchain equities also witnessed outflows of $10.8 million, marking the fifth consecutive week of outflows in this sector.
XRP Investment Products Sees Inflows
In an earlier report, CryptoPotato revealed that interest in altcoins may have diminished significantly in recent weeks as high-profile investors pulled cash out of funds.
Despite the increased negative sentiment, XRP emerged as an outlier. The landmark court victory against the US Securities and Exchange Commission (SEC) could still be a major catalyst in capturing investors even as the XRP’s price trajectory has been a roller coaster since the ruling.
In fact, investment products tied to the crypto-asset continued to attract inflows, with a total of $0.7 million recorded last week. XRP also showed encouraging movements, amassing a net inflow of $0.5 million during the week ending on August 25th.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
