Bitcoin Investment Products Suffer Losses Last Week, Altcoins Come Out Profitable

• In a new report by CoinShares, it was determined that digital asset investment products experienced a $6.5 million outflow for the first time in the past month.
• The outflows last week and the accompanying decrease in trading volume indicate a negative change in investor behavior and sentiment towards this asset class.
• Ripple’s “controversial” token XRP recorded a $2.6 million inflow, and the total inflows over the past 11 weeks amounted to $6.8 million, representing 8% of the assets under management.

Digital asset investment products failed to sustain the intense inflows they had been experiencing for the past 4 weeks and saw outflows last week; while Bitcoin lost, Altcoins stood out.

Investment Products Ended the 4-Week Inflow Streak

In a new report by CoinShares, it was determined that digital asset investment products experienced a $6.5 million outflow for the first time in the past month. This means that the total inflow of $742 million over the four-week period has come to an end.

According to the digital asset investment firm, the trading volume for investment products last week was $1.2 billion, which was below the average weekly volume. This represents a 39% decrease compared to the $2.4 billion trading volume of the previous week.

The outflows last week and the accompanying decrease in trading volume indicate a negative change in investor behavior and sentiment towards this asset class. In particular, the decrease in trading volume indicates a cautious approach by investors towards various factors that could affect market dynamics or temporarily slow down market activity.

Bitcoin, which has been the most preferred investment asset by investors for several weeks, experienced a total outflow of $13 million last week. The outflows of BTC last week affected the market after several weeks of inflows due to positive investor sentiment that led to the flow of ETF (exchange-traded fund) applications in June.

BlackRock applied for a spot BTC ETF on June 15th. This move led competitors to follow the same path and renew their ETF applications. As a result, investors responded enthusiastically, and there was a rapid flow of funds into investment funds focused on BTC until a month later. This rapid increase in investments indicated the fastest growth since October 2021.

Short-Bitcoin investment products, which did not perform well, recorded their 13th consecutive week of outflows. CoinShares stated:

“The total assets under management (AuM) of Short-Bitcoin represented 1.3% of the total Bitcoin investment products when it was at its peak. This has dropped to the lowest level since June 2022, which is 0.4%.”

Altcoins emerged as winners last week

Since the beginning of this year, negative investor sentiment has generally followed the leading altcoin Ethereum. However, BTC and Short-BTC liquidity experienced outflows, and CoinShares stated the following:

“Last week, Ethereum led the leaderboard and experienced an inflow of $6.6 million, indicating a gradual turnaround in the negative sentiment that has prevailed this year.”

In addition, Ripple’s “controversial” token XRP recorded a $2.6 million inflow, and the total inflows over the past 11 weeks amounted to $6.8 million, representing 8% of the assets under management. According to the report, “This implies that investors are gaining more confidence in the outlook for XRP.”

Among other altcoins, Solana, Uniswap, and Polygon recorded small inflows of $1.1 million, $700,000, and $700,000, respectively.