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The market for exchange-traded digital assets has experienced significant outflows this week, totaling $107 million, which reflects an intensified trend of profit-taking observed in recent weeks.
According to CoinShares’ Digital Asset Fund Flows Weekly report, Bitcoin was the focal point, with outflows reaching $111 million, marking the largest weekly outflows since March of this year.
Source: CoinShares
However, when considering the overall market, altcoins appear to be showing signs of improved sentiment, somewhat mitigating the outflows from Bitcoin and Ethereum.
In particular, Solana has emerged as a notable contender, experiencing its highest weekly inflows since March 2022, totaling $9.5 million. XRP and Litecoin also saw significant inflows, highlighting the varied interest among investors.
The report further noted that the outflows were mainly concentrated in two Exchange Traded Product (ETP) providers located in Germany and Canada, which recorded outflows of $71 million and $29 million, respectively.
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While Bitcoin continued to be the main focus, Ethereum also faced outflows of $6 million, bringing the combined outflows for both Bitcoin and Ethereum to $117 million last week.
This change in investment patterns occurs against the backdrop of the summer slowdown. Weekly trading volumes in investment products are currently 36% lower than the year-to-date (YTD) average. In contrast, the overall on-exchange market volumes have declined more sharply, down 62% compared to the YTD average.
Conversely, Uniswap and Cardano experienced smaller outflows of $0.8 million and $0.3 million, respectively. These outflows may suggest a more cautious approach by investors regarding these altcoins.
These significant changes in digital asset flows indicate a noteworthy development in the cryptocurrency markets, as investors currently favor certain altcoins over traditional giants, Bitcoin and Ethereum.
CoinShares analyst James Butterfill provides his insights on weekly crypto ETP flows on the CoinShares Medium blog.
The post Largest Bitcoin ETP outflow since March as profit taking continues appeared first on CryptoSlate.
