Crypto Outflows Continue Amid Market Downturn

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Digital asset investment products saw minor outflows for the 6th consecutive week, totaling $9 million last week according to the latest fund flow data from CoinShares.

Volumes remained down at $820 million for the week, well below the $1.3 billion average so far this year and matching the low volume trend across the broader digital asset markets.

Sentiment split on a regional basis, with European products seeing inflows of $16 million as investors viewed recent regulatory disappointments in the US as a buying opportunity. In contrast, US-listed products saw outflows of $14 million as American investors remained cautious.

“In Europe, the sentiment is much more constructive, investors now have the well-defined MiCa directive and recent flows data suggests they see the weak sentiment in the US as a buying opportunity,” James Butterfill, Head Of Research at CoinShares, commented to Decrypt.

The EU introduced the Markets in Crypto-Assets (MiCA) regulation in April of this year, to protect investors and consumers while promoting a framework for crypto assets and crypto-related services.

Bitcoin saw small outflows for the 3rd straight week, totaling $6 million. Short-bitcoin products also saw outflows of $2.8 million, suggesting investors are capitulating to bearish bets after a brief spike in short interest last month.

Ethereum continued to suffer its 6th consecutive week of outflows totaling $2.2 million as enthusiasm faded for the second-largest cryptocurrency.

Multi-asset funds also saw a steady stream of outflows, now totaling $32 million year-to-date. Investor interest appears to be shifting to more selective plays in the altcoin space, with inflows into XRP and Solana totaling $660,000 and $310,000 respectively.

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