- The report highlights a third week of outflows for digital assets, totaling $30M, with Grayscale leading at $153M.
- Despite a 43% rise in trading volumes to $6.2B, levels remain below the annual average of $14.2B.
- Ethereum sees largest withdrawals since Aug 2022, totaling $119M in two weeks, signaling growing investor concerns.
Crypto journalist Colin Wu reported on Wu Blockchain X’s post that digital asset investment products have seen a third consecutive week of outflows, totaling $30 million. Despite this ongoing trend, the past week showed signs of stabilization, with most providers witnessing minor inflows. However, this was overshadowed by significant outflows from Grayscale, which reported $153 million in withdrawals.
According to a recent report, trading volumes saw a notable increase of 43% week-on-week, reaching $6.2 billion. Despite this rise, volumes remain significantly below the yearly average of $14.2 billion. This discrepancy highlights the volatility and fluctuating interest in digital asset trading.
The United States had the highest inflow of $43 million, followed by Brazil with $7.6 million and Australia with $2.9 million in inflows. On the other hand, Germany, Hong Kong, Canada, and Switzerland experienced negative sentiments, with outflows amounting to $29 million, $23.2 million, $14.4 million, and $13.3 million, respectively.
Ethereum experienced its largest withdrawals since August 2022, totaling $60.7 million. This brings its two-week outflow total to $119 million, making it the worst-performing asset year-to-date in terms of net flows. The significant outflows from Ethereum highlight growing investor concerns and a potential shift away from this major cryptocurrency.
Conversely, multi-asset and Bitcoin exchange-traded products (ETPs) led the inflows with $17.9 million and $10 million respectively. Short-Bitcoin ETPs also saw a rise in outflows, amounting to $4.2 million last week, suggesting a potential shift in market sentiment.
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Among altcoins, Solana and Litecoin stood out, attracting inflows of $1.6 million and $1.4 million respectively. This indicates a diversified interest in various digital assets beyond the major players like Bitcoin and Ethereum.
Despite the generally positive sentiment towards crypto, blockchain equities have not fared well this year. Blockchain equities have faced outflows amounting to $545 million, accounting for 19% of assets under management (AuM). This trend highlights a broader sense of uncertainty among investors toward blockchain-related investments despite the overall growth and heightened interest in the crypto sector.
