Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Cryptocurrency markets are experiencing a revival of negative sentiment, characterized by four consecutive weeks of withdrawals from digital asset investment products, alongside a significant rise in investor interest in short Bitcoin positions.
In its weekly analysis, CoinShares reported that cryptocurrency investment products faced outflows totaling $59 million in the past week. This brings the cumulative outflows to $294 million over the last four weeks, representing 0.9% of the sector’s total assets under management (AUM).
Conversely, investors have significantly increased their investments in short-Bitcoin (BTC) products. According to CoinShares, these products recorded their largest inflow since March, amounting to $15 million.
The negative sentiment is further highlighted by the trading volume of crypto investment products. Data indicates that trading volumes plummeted by 73%, falling to just $754 million from the $2.8 billion noted in the previous week.
Commenting on this trend, CoinShares analyst James Butterfill stated:
“Inflows [into] the short investment products suggests that sentiment remains poor for the asset class. We believe continued worries over regulation of the asset class and recent dollar strength are the most likely reasons for this.”
Related Posts
Bitcoin leads outflows
According to the report, Bitcoin was the most affected, with outflows amounting to $69 million last week, bringing its month-to-date total to $72.4 million.
BTC investment products have been on a downward trend since the U.S. Securities and Exchange Commission (SEC) postponed its decision regarding the numerous spot BTC exchange-traded fund (ETF) applications pending before it. While Grayscale achieved a significant victory that rekindled hopes for SEC approval, investors have largely remained cautious.
In the meantime, other assets such as Ethereum (ETH) and Solana (SOL) experienced outflows of $4.8 million and $1.1 million, respectively.
This outflow results in ETH’s total flows being negative at $108 million, which accounts for 1.6% of Assets Under Management. CoinShares noted that this trend indicates ETH is the “least favored digital asset among ETP investors this year.”
On the flip side, altcoins like XRP continue to see inflows, with last week’s flow reaching $700,000.
Regionally, Germany faced the largest outflows, followed closely by Canada and the United States. Germany reported $20 million in outflows, while Canada and the United States recorded $17.6 million and $12.3 million, respectively.
The post Crypto outflows on the rise as investors bet against Bitcoin appeared first on CryptoSlate.
