Crypto investment products have seen a trend of outflows for five consecutive weeks, as $54 million left these products in the past week, according to the latest CoinShares Weekly report. This extends the total outflows over the past nine weeks to $455 million, underscoring the prevailing bearish sentiment in the market.
Large outflow from the US
CoinShares noted that the United States dominates the outflows, accounting for approximately 77% of these exits due to the seemingly endless regulatory restrictions on crypto-related businesses in the region.
US financial regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), have initiated enforcement actions against several crypto entities such as Binance and Coinbase, as well as decentralized financial protocols such as Opyn and Deridex.
These regulatory measures have created a challenging environment for crypto companies operating in the United States as the regulatory landscape remains unclear.
Short BTC Products Are ‘Most Loved’
CoinShares called the short Bitcoin investment products the “most favored,” even as it experienced an outflow of $3.8 million in the past week. The company reports that these products generated approximately $12 million in inflows last month.
Conversely, BTC investment products bore the brunt of last week’s outflows, accounting for 85% of the total at around $45 million. Their monthly performance shows a significant negative trend, with withdrawals exceeding $100 million, indicating a consistent investor exodus.
In a surprising twist, despite its attractive investment opportunities and strong demand for its staking returns, Ethereum witnessed an outflow of $4.8 million last week. CoinShares had previously categorized this digital asset as the “least liked” among investors.
Despite the prevailing bearish sentiment, select altcoins managed to attract inflows. Solana, Cardano and XRP recorded inflows of $0.7 million, $0.43 million and $0.13 million respectively.
Nevertheless, flows into digital asset products remain positive throughout the year as they currently stand at $51 million according to the year-to-date metric.
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