The exchange-traded digital asset market has seen significant outflows this week, totaling $107 million, illustrating an accelerated pace of continued profit-taking in recent weeks.
CoinShares’ Digital Asset Fund flows weekly report stated that Bitcoin took center stage with an outflow of $111 million, the most significant weekly outflow since March this year.
However, taking a broader view of the market, altcoins appear to be showing signs of improving sentiment, partially offsetting the outflows in Bitcoin and Ethereum.
specifically, Solana emerged as a major player, witnessing the largest weekly inflow since March 2022, worth $9.5 million. XRP and Litecoin also saw notable inflows, underlining the diversified interest among investors.
The report further highlighted that the outflows were primarily directed at two Exchange Traded Product (ETP) providers in Germany and Canada, which saw outflows of $71 million and $29 million, respectively.
While Bitcoin remained the primary focus, Ethereum also experienced outflows totaling $6 million, bringing total outflows in both Bitcoin and Ethereum to $117 million last week.
This shift in the investment trend can be seen against the backdrop of the summer slowdown. Weekly trading volumes in investment products are 36% below the year-to-date (YTD) average. However, broader exchange market volumes suffered more, down 62% from the YTD average.
Unlike, Uniswap And Cardano saw smaller outflows of $0.8 million and $0.3 million, respectively. This outflow may indicate a more cautious investor attitude towards these altcoins.
These significant shifts in digital asset flows signal an intriguing development in the crypto markets, as investors are currently favoring certain altcoins over conventional behemoths, Bitcoin and Ethereum.
CoinShares analyst James Butterfill presents his analysis of weekly crypto ETP flows on the CoinShare medium blogging.
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