Posted:
- Last week Ddigital investment products saw a small outflow of $9 million.
- Leading coin Bitcoin accounted for 66% of all funds removed from crypto funds.
Digital asset investment products recorded outflows totaling $9 million last week, marking the sixth consecutive week of outflows, digital asset investment firm CoinShares found in a new report.
Last week’s low interest in digital assets was reflected in the decline in trading volume.
CoinShares noted:
“Volumes were low this week at $820 million, well below the year-to-date average of $1.3 billion, consistent with a similarly low volume trend in the broader digital asset market.”
As bearish sentiments swept the digital investment market, net inflows year-to-date (YTD) fell below $100 million. Last week, net inflows since the beginning of the year were $40 million, down 22% from the $51 million recorded the week before.
Amid ongoing regulatory uncertainty surrounding crypto in the US, investors in the region pulled $14 million from crypto fund outflows last week. Conversely, inflows into Europe during the same period amounted to almost $20 million.
CoinShares attributed the divergence in money flows between the two regions to European investors “seeing the recent regulatory disappointment as an opportunity.”
Bitcoin and Short Bitcoin Products
With $6 million withdrawn from crypto funds last week, Bitcoin [BTC] investment products accounted for almost 66% of the total outflow. This brought month-to-date outflows to $124 million, up 5% from the previous week’s $118 million.
In terms of YTD flows, BTC net inflows continued to decline as the price remained below $27,000 for most of the past week.
On September 19, the leading coin briefly traded above $27,000 to exchange hands at a high of $27,399 before reversing the uptrend. According to CoinShares, BTC net inflows fell to $148 million last week, down 5% from $55 million the week before.
As for Short-Bitcoin products, they witnessed a $3 million outflow from crypto funds last week. CoinShares added:
“The US$15 million inflow into short bitcoin in one week this month looks more like an isolated event, as there has been an outflow totaling 78% of assets under management (AuM) over the past 22 weeks, which suggests indicates that investors continue to capitulate to their short positions.”
The fact that there have been large outflows from short Bitcoin products over the past 22 weeks suggests that investors are generally not bearish on the leading coin, despite recent price movements.
Although positive sentiment has remained at its lowest, investors generally do not believe that the price of the coin will fall significantly in the near future. Hence the shortage of funds in short bitcoin products.
Ethereum remains disappointing
Ethereum [ETH] recorded its sixth week of consecutive outflows when $2.2 million was repaid last week. In the same period Solana [SOL] and Ripple [XRP] recorded inflows of $300,000 and $700,000 respectively.
As for multi-asset investment products, these “have also suffered this year, with a small but steady trickle of outflows now totaling $32 million for the year to date.”