Bearish Trend Persists: Coinshares Sees $17M Outflows From Digital Asset Products
The digital asset market has been on a bearish trend recently, with CoinShares reporting a $17 million outflow from their investment products. This is indicative of ongoing regulatory concerns in the industry, which have created uncertainty and potential risk for investors. While there have been some positive developments, such as the US SEC’s approval of a Bitcoin futures ETF, sentiment remains poor and cautious.
In terms of volumes, both investment products and the Bitcoin market have experienced a dip, with the former averaging US $844 million for the week and the latter averaging US $57 billion, which is 15% lower than usual. This indicates a lack of trading activity and potential indecisiveness among investors.
Regionally, there seems to be a mixed sentiment. The US saw inflows totaling US $7.6 million, while Europe experienced outflows of US $23 million. Despite the recent inflows into short-bitcoin, which allows investors to bet on the price of Bitcoin going down, total assets under management (AuM) have only risen by 4.2% year-to-date compared to long-bitcoin AuM, which has increased by 36%. This suggests that investors are still optimistic about the long-term potential of Bitcoin.
In contrast, altcoins have seen minor inflows, with Ethereum and Solana experiencing $0.7 million and $0.34 million, respectively. However, Binance and Cosmos have seen outflows of US $0.38 million and US $0.21 million, respectively. This highlights the volatility and unpredictability of the altcoin market, as well as the potential risks involved.
On the other hand, blockchain equity investors have remained bullish, with inflows of $1.6 million reported last week. This indicates that there is still confidence in the blockchain industry as a whole, despite the challenges faced by the digital asset market.
It is important for investors to stay informed and cautious in light of the ongoing regulatory concerns and potential risks involved in the digital asset market. While there have been some positive developments, such as the recent approval of Bitcoin futures ETFs by the US SEC, there is still a significant amount of uncertainty and volatility in the industry. Thorough research and a long-term investment strategy are crucial for success in this market.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
