- Investors saw a significant outflow of $107 million as profit realization gained momentum during the summer lull.
- Germany and Canada were the focal points of the outflows, with two ETP providers experiencing outflows of $71 million and $29 million respectively. Bitcoin, the center of attention, accounted for the majority of these outflows.
- The altcoin market began showing signs of hope, balancing the outflows from Bitcoin and Ethereum. Solana achieved the highest weekly inflow since March 2022 with an entry of $9.5 million.
Digital asset investment products experienced substantial outflows last week, with Bitcoin being the primary focus and significant outflows recorded in Germany.
Third Consecutive Week of Outflows from Digital Asset Investment Products
According to CoinShares’ latest ‘Digital Asset Fund Flows Weekly’ report, investors in digital asset investment products witnessed a significant outflow of $107 million due to the acceleration of profit realization during the summer lull.
The trading volume for investment products remained 36% below the average since the beginning of the year, and the broader exchange volume experienced a larger decline of 62% compared to the start of the year, as stated in the report.
Germany and Canada were the focal points of the outflows, with two ETP providers experiencing outflows of $71 million and $29 million respectively. Bitcoin, the center of attention, accounted for the majority of these outflows, resulting in a total outflow of $111 million – the largest weekly outflow since March, coinciding with increased regulatory scrutiny in the United States.
The report also notes that inflows into short-term Bitcoin have halted after 14 consecutive weeks of influx. Ethereum also experienced outflows of $6 million during the week, resulting in a total outflow of $117 million from Bitcoin and Ethereum.
The altcoin market began showing signs of hope, balancing the outflows from Bitcoin and Ethereum. Solana achieved the highest weekly inflow since March 2022 with an entry of $9.5 million. Litecoin and XRP also experienced modest inflows of $0.46 million and $0.5 million respectively.
However, not all altcoins shared a positive sentiment. Uniswap and Cardano experienced outflows of $0.8 million and $0.3 million respectively, highlighting a diversified market landscape.
Do Altcoins Hold Promise?
While Bitcoin’s dominance in outflows remains significant, increased inflows into specific altcoins indicate a potential shift in investor preferences and market dynamics. Among the winning altcoins are Shiba INU, XRP, and Litecoin.
In fact, analyst Michael van de Poppe shared a message on Twitter to inform his followers that altcoins might gain value if Bitcoin breaks through and retests the psychological level of $30,000 as support.
The Crypto Fear and Greed Index remains around 50/100, indicating a neutral sentiment. The current cryptocurrency market cap is $23.48 billion, signifying a significant increase. However, the overall market sentiment continues to remain neutral.
