CoinShares: Bitcoin Sees Outflows of $38 Million

In a continuation of a downward trend, digital asset investment products have witnessed their fourth consecutive week of outflows, totaling US$54m. This brings the overall outflow to US$200m, representing 0.6% of the total assets under management (AuM). The recent decline in prices has resulted in a 13% decrease in total AuM since its peak in mid-April.

Outflows Continue Amidst Market Decline

The persistent outflows from digital asset investment products indicate a prevailing negative sentiment among investors. However, unlike previous weeks, the outflows were not limited to a specific region, suggesting that the negative sentiment is widespread rather than concentrated among a few investors.

Bitcoin continues to dominate the outflows, with a total of US$38m leaving the market. Over the past four weeks, outflows from Bitcoin alone have reached US$160m, accounting for a substantial 80% of all outflows during this period.

Notably, Europe experienced a significant portion of the outflows, while 84% of the outflows in the United States were attributed to investors selling short positions.

Furthermore, when considering short-bitcoin outflows, the total investor activity primarily revolves around this digital asset, totaling US$201m.

Investors Venture into Altcoins

Despite the overall outflows, a noteworthy trend has emerged. Investors are exhibiting a growing appetite for altcoins, as inflows were observed across eight different altcoin assets. This suggests that investors are becoming more adventurous and selective in their investment choices.

Several altcoins attracted significant inflows, signaling a shift in investor interest. The most prominent inflows were observed in Cardano, Tron, and Sandbox, with inflows amounting to US$0.5m, US$0.23m, and US$0.2m, respectively. These altcoins have managed to attract investor attention amid the broader market downturn. However, BNB was the only altcoin to experience outflows, totaling US$0.5m.

Digital asset investment products have encountered another week of outflows, reflecting the persisting negative sentiment in the market. Bitcoin remains the primary focus for investors, accounting for the majority of outflows, both in terms of the asset itself and short positions.

The outflows from digital asset investment products are a sign that investors are becoming more cautious about the cryptocurrency market. However, it is important to note that the outflows are still relatively small compared to the total amount of assets invested in digital asset investment products. It is also important to note that the cryptocurrency market is evolving, and it is normal for there to be volatility in the market.

It is too early to say whether the outflows from digital asset investment products are a sign of a long-term trend or a temporary blip.