Releases of digital asset investment products continued for the third consecutive week. The latest weekly outflow of $435 million marks the highest outflow since March.
According to the latest report from CoinShares, trading volumes on exchange-traded products (ETPs) fell to $11.8 billion last week from $18 billion the previous week as Bitcoin prices fell by 6 %.
Bitcoin and Ethereum lead digital asset outflows
The latest edition of CoinShares’ Digital Asset Fund Flows revealed that outflows were focused exclusively on the top two cryptocurrencies – Bitcoin and Ethereum – with $423 million and $38 million respectively.
During the same period, short Bitcoin investment products generated $1.3 million in inflows. This suggests growing interest from market participants to hedge or take advantage of downward movements in the price of BTC, as the asset trades just above $62,000.
On the other hand, several altcoins have defied the widespread downtrend. In fact, the asset manager found that investors were mainly opting for multi-coin investment products, which generated inflows of $7 million.
Other popular picks, such as Solana, Litecoin, and Chainlink, continued to attract $4 million, $3 million, and $2.8 million, respectively. Polkadot garnered $0.5 million in inflows, and investment products linked to XRP and ADA also saw $0.4 million in inflows during the week.
Switzerland and Brazil defy the negative trend
As in previous cases, outflows were concentrated in the United States, which recorded $388 million. However, it is important to note that year-to-date capital inflows into the United States still stand at a record $13.6 billion. Additionally, the majority of releases came from Grayscale, with $440 million, the lowest in nine weeks.
As Grayscale outflows slow, CoinShares has also seen a decrease in inflows from new issuers, which amounted to just $126 million last week, compared to $254 million the week before. Germany and Canada also faced negative sentiment, with $16 million and $32 million in capital outflows, respectively. Capital outflows from Sweden for the week totaled $8.1 million.
Bucking the trend, Switzerland and Brazil welcomed inflows of $5 million and $4 million, respectively. Meanwhile, Australia saw modest inflows of $0.5 million over the same period.
