Everyone is wondering where institutional investors selling Bitcoin and Solana are headed. Our article answers this question. Let’s have a look at the details.
Bitcoin and altcoin output
There is a total outflow of USD 39 million in digital asset investment products. This is the sixth-week figure in total debuts of US$272 million. Bitcoin is the focus, with a total output of $11 million. In addition, the BTC exit in the short position is $ 11 million. However, these outflows are much more dramatic for shorted BTC, which represents 36% of total assets under management. On the other hand, altcoins saw exits last week. Accordingly, the most notable was Algorand, which saw 65% of AuM last week. The other was Ethereum with $5.9 million. On the other hand, there are entries for Litecoin, Uniswap and XRP. Investors have bought for these three coins.
There is a total outflow of USD 39 million in digital asset investment products. Compared to last week, volumes remain low, at 58% of this year’s average. This is also reflected in a wider area where volumes in the digital asset space are only 38%. Relatively, investment products are more active than usual compared to the broader market. So last week’s volumes represented almost 8% of the total market, while the average only 2%. When we look at Kriptokoin.com, there is a decrease for Bitcoin.
The decline continues
Meanwhile, overall AuM (assets under management) has dropped from its peak of $198 million in mid-May to $144 million now. Accordingly, it experienced a significant decrease of 27%. This decline is mainly due to the outflows in BTC and altcoins. After all, it is much larger than the 3% drop in AuM observed in long-focused Bitcoin positions over the same period. Additionally, blockchain stocks experienced minor outflows of $3.4 million over the same period. This further reflects the widespread negative mood.
Weeks of consecutive exits and the decline in AuM are adding to the ongoing negative mood in the digital asset market. Investors appear to be cautious. This results in reduced trading volumes and a clear focus on BTC. The significant exit from short-focused Bitcoin positions indicates an increased level of anxiety among market participants. As the digital asset market continues to evolve, these trends highlight the importance of closely monitoring investor sentiment and its impact on various assets. The coming weeks will undoubtedly be crucial for the industry as market participants are closely watching the shifts in sentiment and their potential impact on digital assets and investment products.
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