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Altcoin ETPs experience inflows while ETH and BTC face outflows as alternative cryptocurrencies rebound.
The week concluding on June 19, 2023, recorded slight outflows amounting to $5.1 million from digital asset investment products, according to CoinShares’ Digital Asset Fund Flows Weekly.
In spite of these outflows, altcoins attracted inflows totaling $2.4 million following the price decline of the previous week, indicating a change in investor sentiment.
Ethereum (ETH) faced the largest outflows for the week, reaching $5 million, while altcoins such as XRP, Cardano, and Polygon received inflows of $1 million, $0.6 million, and $0.2 million, respectively. These inflows suggest that investors are increasing their ETP holdings in these cryptocurrencies, even amid the overall downward trend in digital asset investment products.
Source: CoinShares
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When comparing this data to the previous week, during which Ethereum ETPs experienced their largest single week of outflows since the Merge, the overall trend of continued outflows seems to persist. Nonetheless, a shift in investor sentiment towards all major altcoin ETPs, with the exception of Tron, is becoming apparent.
This trend prompts inquiries regarding the future of digital asset ETPs, especially considering recent applications by Fidelity and BlackRock to launch Bitcoin ETFs. With interest rate increases making investors more cautious, as highlighted by CoinShares, it remains unclear how these new offerings will influence the digital asset investment environment if they are approved.
Moreover, there continues to be uncertainty surrounding several assets, including ADA and Polygon, which experienced inflows this week due to the SEC’s assertion in court documents that it views those tokens as securities in the Coinbase and Binance lawsuits.
While the long-term consequences of this trend remain ambiguous, it underscores the shifting interest in digital assets through conventional financial instruments like ETPs.
The post Altcoin ETPs see inflows amid ETH, BTC outflows as alts recover appeared first on CryptoSlate.
