Digital Asset Fund Flows Report Reveals Significant Outflows Amid Market Correction

Digital Asset Fund Flows Report Reveals Significant Outflows Amid Market Correction

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

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