- Last week’s outflow represented the largest outflow in the past five months.
- This may be due to waning positive sentiment as the SEC continues to await approval a spot-based ETF for Bitcoin.
Last week, digital asset investment products recorded outflows totaling $168 million. This represented the largest weekly outflow since US regulators cracked down on exchanges in March 2023, says digital asset investment firm. Currency Shares found in a new report.
Last week’s $168 million inflow from crypto funds represented a 205% increase from the previous week’s $55 million outflow.
In addition to the aftermath of the violent Bitcoin [BTC] Following the August 17 sell-off, CoinShares believed the outflow may be due to growing acceptance that a spot-based ETF for Bitcoin in the US is likely to take longer than many expect, with recent delays being announced by the SEC. ”
The digital asset investment firm further found that the month was marked by low trading volumes.
“This August outflow now stands at $278 million in a market with exceptionally low trading volume, with investment products trading $1.3 billion this week, 16% below the annual average,” said CoinShares.
Noting that the negative sentiment was not limited to the US, CoinShares stated that Germany and Canada, which have seen inflows in recent weeks, recorded outflows of $68 million and $61 million respectively last week.
Source: CoinShares
Bitcoin remains the main victim
Bitcoin investment products accounted for the bulk of last week’s outflows, valued at $149 million. This represented 87% of all funds withdrawn from the market during the reporting period.
With the month so far marked by massive BTC selloffs, outflows from its investment products have totaled $251 million so far, CoinShares found. Despite this, net flows remain positive this year at $265 million.
Short Bitcoin products continued the trend of outflows and had a liquidity exit of $4 million last week. This was the 18th week of consecutive money outflows. And as noted by CoinShares, it represented “89% of total assets under management (AuM).”
Ethereum led the charge
As for altcoins, leading coin Ethereum [ETH], experienced the most outflow. $17 million in capital was removed. This was an 88% increase from last week’s $9 million outflow. So far, outflows have been second only to BTC at $30 million.
On the other hand, alts like Ripple [XRP]Litecoin [LTC]and Solana [SOL] registered small inflows of $500,000, $440,000 and $100,000 during the same period.