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.

weekly-crypto-asset-flows

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.

Don't forget to enable notifications for our Twitter account and Telegram channel to stay informed about the latest cryptocurrency news.

BREAKING NEWS

SharpLink Gaming (SBET) Amasses 837,230 ETH ($3.89B) — 39.8% 30-Day Surge, $915.3M Unrealized Profit

COINOTAG News on September 14 reported that SharpLink Gaming...

ETH Breaks $4,600: Whale Huang Licheng Places 6,800-ETH $4,675–$5,000 Sell Order While 15x Long Holds 18,516 ETH with $3.7M Unrealized Profit

COINOTAG News on September 14, citing HyperInsight monitoring, reports...

Ethereum Liquidation Alert: $541M Long at $4,600 vs $879M Short at $4,750 on Major CEXs (Coinglass)

COINOTAG reported on September 14, citing Coinglass data that...

ETH Sees $15.29M in 1-Hour Liquidations as Global Crypto Liquidations Hit $296M

According to coinglass data, in the past hour UNI...

Bitcoin Liquidations: Drop Below $114K Could Trigger $687M in Longs — Break Above $117K Might Unleash $494M in Shorts

COINOTAG News (Sept 14) cites Coinglass data indicating that...
spot_imgspot_imgspot_img

Related Articles

spot_imgspot_imgspot_imgspot_img

Popular Categories

spot_imgspot_imgspot_img