According to CoinShares, the latest Digital Asset Fund Flows Weekly Report indicates a significant market correction with digital asset investment products experiencing a second consecutive week of outflows, totaling $584 million. This downturn has resulted in a total reduction of $1.2 billion.
Bitcoin (BTC) Leads the Outflows
Bitcoin (BTC) was the primary focus of these outflows, suffering a substantial $630 million withdrawal. Despite this negative sentiment, investors did not increase their short positions, with short Bitcoin seeing $1.2 million in outflows.
Regional Impact
The United States experienced the largest outflows at $475 million, followed by Canada with $109 million. Germany and Hong Kong also recorded outflows of $24 million and $19 million, respectively. In contrast, Switzerland and Brazil saw inflows of $39 million and $48.5 million, respectively.
Ethereum (ETH) and Altcoins
Ethereum (ETH) was not immune to the negative sentiment, witnessing outflows of $58 million. However, several altcoins saw inflows due to recent price weaknesses. Solana (SOL), Litecoin (LTC), and Polygon (MATIC) saw inflows of $2.7 million, $1.3 million, and $1 million, respectively.
Multi-Asset Products See Inflows
Interestingly, multi-asset products bucked the trend, recording $98 million in inflows. This suggests that investors are viewing the weakness in the altcoin market as a buying opportunity.
Market Context
The report also highlighted that last week saw the lowest trading volumes on Exchange-Traded Products (ETPs) globally since U.S. ETFs were launched in January, with a total of just $6.9 billion traded for the week.
For further details, the full report can be accessed on the CoinShares blog.
Image source: Shutterstock
Source link
