• 30 May, 2024
News

Digital Asset Flows Decline in the US, Surge in Hong Kong ETFs

According to a report by Coinshares, for the past month, digital asset investment products have experienced a steady decline in interest in the US, culminating in a cumulative outflow of $251 million. However, concurrently, Hong Kong’s financial market told a different story, with a remarkable influx of $307 million into newly launched spot-based ETFs.

Significantly, this trend marks the first occasion where newly issued ETFs in the US registered notable withdrawals. These products, having debuted to great anticipation, faced a tough week with a $156 million pullback. This retreat could be attributed to the falling market prices, which dipped below the average purchase price of $62,200 per Bitcoin, possibly triggering automatic sell orders.

Moreover, the regional analysis reveals that the outflows were not isolated to the US alone. Other nations such as Canada, Switzerland, and Germany also recorded minor outflows. The sums were smaller, amounting to $9.6 million, $9.8 million, and $7.3 million, respectively.

Source: Coinshares

Additionally, last week brought some positive developments. Ethereum saw a reversal from its previous seven weeks of outflows, this time gaining $30 million. This indicates a renewed investor interest or strategic purchasing at lower price levels.

Source: Coinshares


Besides, altcoins displayed resilience and appeal among investors. Notably, Avalanche, Cardano, and Polkadot reported inflows of $0.5 million, $0.4 million, and $0.3 million, respectively. Hence, while Bitcoin continued to face challenges, shedding $284 million, the broader digital asset market showed signs of diversification and selective investor confidence.

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