Digital Asset Investments Experience Outflows for Sixth Consecutive Week

Investment products have experienced outflows for the sixth consecutive week, according to a recent report from CoinShares. Last week, the market faced an outflow of $9 million, with total sales dropping to $820 million, a significant decline from the average of $1.3 billion.

Regional sentiment shows a contrasting picture. In Europe, capital inflows reached $16 million, as investors view recent regulatory setbacks as potential opportunities. Conversely, investors in the U.S. withdrew $14 million amid turbulence in the local crypto market.

The report highlights this regional divergence, stating that “inflows into Europe totaled $16 million, where investors see recent regulatory disappointment as an opportunity, while U.S. investors pulled out $14 million.”

Bitcoin-based products saw outflows for the third straight week, with a $6 million outflow noted last week. Despite this, there was a surprising inflow of $15 million into short Bitcoin positions. Analysts point out that there have been substantial outflows—amounting to 78% of assets under management—over the past 22 weeks, indicating a trend of investors liquidating their short positions.

Ethereum also faced outflows for the sixth week in a row, recording a decline of $2.2 million. Other altcoins have similarly struggled this year, with total investment outflows reaching $32 million.

Experts believe that investors are becoming more selective within the altcoin market, as evidenced by continued inflows in specific cryptocurrencies, including Solana and others, which saw inflows of $0.66 million and $0.31 million, respectively.