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- The digital asset recorded its first outflow in nearly three months last week.
- This is because profit-taking activities have increased rapidly.
Digital asset investment firm CoinShares said capital flight from its investment products totaled $16 million last week, signaling a potential shift in sentiment following sustained strength. report.
During the period under review, a wave of investor withdrawals swept digital asset markets, wiping out 11 weeks of steady inflows.
Despite the recorded outflows, weekly trading volume was above the average at the start of the year, according to the investment firm.
CoinShares noted:
“However, trade activity remained well above the annual average, totaling $3.6 billion this week compared to an average of $1.6 billion at the start of the year.”
At the regional level, most of last week’s liquidity outflows from cryptocurrency funds occurred in the United States and Germany, with $18 million and $10 million outflows respectively.
On the other hand, Canada and Switzerland recorded small inflows of $7 million and $9.1 million, respectively.
This led CoinShares to comment:
“Mixed regional flows suggest this has more to do with profit-taking than a shift in sentiment towards the asset class.”
Bitcoin took the biggest hit
During the week under review, investment products backed by the leading cryptocurrency Bitcoin (BTC) recorded outflows of $33 million.
Significant inflows into BTC-backed products over the past two months have pushed the coin’s year-to-date (YTD) past $1.5 billion. The amount tethered was close to $2 billion, bringing the total to $1.67 billion despite the withdrawal of funds last week.
According to the report, on a monthly basis, BTC recorded a net fund flow of $7 million.
During the week considered, BTC’s assets under management (AUM) totaled $36 billion, accounting for 72% of the total market AUM of $50 billion.
Short-term Bitcoin products recorded a small outflow of $300,000.
Ethereum failed, but other alternatives excelled.
Within the altcoin ecosystem, the representative altcoin Ethereum (ETH) recorded the highest outflow. The second-largest cryptocurrency by market capitalization recorded outflows of $4.4 million during the period.
this is 6 week period of consecutive funds flowed into ETH-backed assets, reaching $19 million. YTD outflow of coins was $129.4 million.
Regarding other Alts:
“Altcoins bucked the trend and recorded inflows of USD 21 million. The main beneficiaries are Solana, Cardano, XRP and Chainlink, totaling $10.6 million, $3 million, $2.7 million and $2 million respectively.”