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For the sixth consecutive week, digital asset investment products saw outflows totaling $9 million in the last week. Although this figure is considerably lower than the previous week, which was marked by negative investor sentiment and significant outflows, the weekly trading volumes remained low at just $820 million, well below the year-to-date average of $1.3 billion.
This trend reflects the overall pattern of diminished trading volumes in the digital asset market.
6th Consecutive Weekly Outflows
As reported in the latest edition of CoinShares’ “Digital Asset Fund Flows Weekly Report,” Bitcoin experienced minor outflows for the third consecutive week, amounting to $6 million.
Short-Bitcoin products also recorded outflows of $2.8 million. The one-week influx of $15 million into short-Bitcoin earlier this month seems to be an isolated event, according to the findings from the digital asset manager.
Over the past 22 weeks, outflows have exceeded 78% of assets under management (AuM), indicating that investors are consistently moving away from their short positions.
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The largest altcoin, Ethereum, encountered its sixth consecutive week of outflows, totaling $2.2 million. Multi-asset investment products have similarly experienced a steady outflow this year, with the year-to-date total reaching $32 million.
CoinShares also observed that investors appear to be becoming more “discerning” in the altcoin sector, with ongoing inflows into XRP and Solana amounting to $0.66 million and $0.31 million, respectively.
Regional Sentiment Divergence
Similar to the previous week, the current week displayed a significant contrast in sentiment across various regions. Investors in Europe demonstrated a bullish outlook, contributing a notable $16 million as they sought to take advantage of perceived regulatory challenges.
In contrast, the US investor base remained cautious, withdrawing $14 million, likely reflecting ongoing concerns related to recent developments, including uncertainty regarding regulations and the Securities and Exchange Commission’s (SEC) enforcement actions against several major crypto firms, such as Binance and Coinbase.
This divergence in investment behavior highlights the complex interaction of global economic factors and the differing perspectives held by investors in various geographic regions.
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