Digital asset investment products like exchange-traded funds (ETF) witnessed outflows exceeding $59 million over the past week. The latest run of outflows brought the total figure to a whopping $294 million, which indicated poor sentiment in the crypto market. The outflows were reported in the latest edition of CoinShares’ Digital Asset Fund Flows Weekly Report.
According to CoinShares’ report, Bitcoin was the most affected crypto asset in the latest outflows, contributing more than $68 million to last week’s outflows. Ethereum was the second most affected crypto asset, losing nearly $5 million to outflows. Interestingly, Short Bitcoin saw its largest single-week inflow in over five months, bringing in over $15 million.
Purpose Investments Inc ETFs and ETC Issuance GmbH accounted for over half of the outflows, $40 million to be precise. CoinShares Digital Securities was one of the few digital asset investment product providers that saw an inflow ($2.4 million). Grayscale Investments, which manages the world’s largest Bitcoin fund (GBTC), had no inflows or outflows.
James Butterfill, the Head of Research at CoinShares, stated:
Inflows were also seen in short investment products, suggesting sentiment remains poor for the asset class. We believe continued worries over-regulation of the asset class and recent dollar strength are the most likely reasons for this.
In addition to experiencing its fourth consecutive week of outflows, the crypto market also witnessed a 73% decline in trading volumes. Following the latest round of outflows, the total assets under management of digital asset investment product providers stood at $31.7 billion. Providers based in Germany accounted for more than a third of the outflows ($20 million).
CoinShares added that in addition to digital asset investment products, blockchain equities were also affected by the negative sentiment. This asset class lost more than $10 million to outflows, marking the 5th consecutive week of outflows.
