Outflows continue in digital asset investment products. On the other hand, Bitcoin was hit hard. There are also entries for an altcoin. Let’s look at the details.
Digital asset investment products face constant outflows
Last week, digital asset investment products focused on Bitcoin and altcoins had a rough time, with a total outflow of $59 million. This marks the fourth consecutive weekly breakout. On the other hand, it brings the total amount in this period to 294 million US dollars. Accordingly, it corresponds to 0.9% of total assets under management (AuM).
Simultaneously, there have been entries into short-oriented investment products. Accordingly, this situation reflects the prevailing cautious mood regarding Bitcoin and the altcoin-focused asset class. The main factors behind this trend are likely regulatory concerns and the recent strength of the US dollar. In addition, trading volumes are down a significant 73% compared to the previous week. Thus, it drops to 754 million US dollars per week.
Bitcoin took a hit, there is a rush to altcoin XRP
Bitcoin was particularly affected, witnessing an outflow of $69 million last week. Interestingly, short-focused Bitcoin products recorded their most significant weekly entry since March 2023. The figure came to an impressive US$15 million. The timing of this influx is remarkable. Because the entries in March coincided with a period of increased regulatory uncertainty.
On the other hand, the struggle of altcoin Ethereum continues. Ethereum also faced difficulties as it recorded a total outflow of $4.8 million. This contributed to year-to-date outflows of $108 million, representing 1.6% of AuM. As a result, altcoin Ethereum has emerged as the least preferred digital asset among ETP investors this year. In contrast, XRP continued to experience total inflows of $0.7 million last week.
Blockchain stocks under pressure
Negative sentiment in altcoin-focused products has also spread to blockchain stocks. Accordingly, there was an outflow of 10.8 million US dollars, marking the fifth consecutive week. In summary, when we look at Kriptokoin.com, digital asset investment products have encountered constant outflows.
Bitcoin and altcoin Ethereum have faced significant challenges. There are significant outflows, especially in Bitcoin. On the other hand, short-oriented Bitcoin products have attracted increasing interest. Ethereum becomes the least preferred digital asset among ETP investors in 2023. He also continues to struggle with breakouts. Meanwhile, blockchain-focused stocks are also struggling with negative sentiment. It records consecutive weeks of breakouts.
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