Posted:
- As negative sentiment began to subside, cryptocurrency outflows fell to their lowest level in weeks.
- With year-to-date net inflows of $26 million, Solana could be “the most loved altcoin.”
Capital flight from digital asset investment products ‘cooled’ last week, pushing outflows to a low of $11.2 million, digital asset investment firm CoinShares found in a new report.
Source: CoinShares
Last week’s $11.2 million liquidity outflow from crypto funds represented a 93% drop from the $168 million outflows recorded the previous week. According to Currency Sharesthat week’s outflow was the largest since the U.S. regulatory crackdown on stock markets in March 2023.
CoinShares opined that last week’s drop in activity could be due to negative sentiment taking a “turn”. However, despite the low activity, trading volume rose 90% above the YTD average. During the reporting period, trading volume was $2.8 billion.
The digital asset investment firm added:
“Year-to-date digital asset investment products remain in net inflows totaling $165 million, with the year-to-date plagued by major swings in investor flows, largely driven by hopes and concerns about digital asset regulation .”
For the first time in weeks, Bitcoin was not the main victim
The past few weeks have been marked by significant Bitcoin [BTC] sale. For context, BTC investment products accounted for the bulk of last week’s outflows last week, at $149 million. This represented 87% of all funds withdrawn from the market during that period.
With the gradual resurgence of positive sentiment, the King Coin registered a small $3.8 million inflow last week. The report stated that the coin YTD showed net inflows of $269 million.
The Short Bitcoin products continued the outflow trend and suffered a $3.3 million liquidity exit last week. This was the 19th week of sequential money outflows, “with total assets under management (AuM) down 48% from this year’s peak,” according to CoinShares.
Solana is king
According to Solana’s report [SOL] Inflows over the past nine weeks have totaled $700,000. This brought YTD inflows of the Layer 1 (L1) coin to $26 million, indicating that “it is currently the most loved altcoin among investors.”
On the other hand, the leading coin is Ethereum [ETH], suffered from the outflow. It saw the removal of capital worth $3.2 million from crypto funds. At the same time Polygon [MATIC] last week saw the highest amount of outflows, totaling $9 million.