- Digital investment products saw outflows of $54 million last week.
- As investors turned their attention to BTC and short BTC, altcoins recorded inflows
Digital asset outflows hit $54 million last week, marking the third consecutive week of outflows at $200 million, CoinShares found in a report published on May 15.
Read Bitcoin [BTC] Price Forecast 2023-24
According to his previous reportCoinShares had noted that the continued exit of liquidity from digital asset investment products was due to the negative sentiment plaguing the general cryptocurrency market. As negative sentiment continued last week, even more divestments were made, with a significant portion of those outflows related to Bitcoin [BTC].
According to CoinShares, outflows of $54 million from digital asset investment products last week represented 0.6% of total assets under management (AuM). While the market was on a downward trend, driving crypto asset prices down, total assets under management fell “13% since their peak in mid-April.”
Source: Coinshares
As BTC remains in the $27,000 price range, investment pullbacks are on the rise
In its report, CoinShares found that “investors are targeting Bitcoin” as the king coin recorded outflows totaling $38 million last week. This represented 70% of the total money withdrawn from investment products during that period. Moreso, this figure brought the coin’s fourth week of outflows to $160 million.
The additional $38 million outflow brought BTC outflows to $69 million to date and year-to-date outflows to $78 million. It also led to a 4% reduction in the coin’s total assets under management within a seven-day period.
In terms of short Bitcoin investments, there was an outflow of $10.4 million, bringing the month-to-date outflow to $34 million. In the previous week, short Bitcoin investment products recorded their largest weekly outflow of $23.
Source: Coinshares
How much are 1,10,100 BTC worth today?
Alts were the winners
According to CoinShares, the multi-asset investment market saw total outflows of $7 million last week. However, there was an interesting trend of inflows into eight different altcoin assets, “suggesting that investors are becoming more adventurous and selective.”
Altcoins like Ethereum [ETH]Cardano [ADA]Throne [TRX]and sandbox [SAND] recorded inflows of $100,000, $500,000, $230,000, and $200,000, respectively. Conversely, the only altcoin to witness an outflow was Binance’s BNB coin, which saw a $500,000 withdrawal.
Source: Coinshares
Regarding regional sentiment, CoinShares noted:
“As was the case last week, outflows have been broad from a regional perspective, suggesting that the negative sentiment is not concentrated on just a few investors. That said, outflows were mainly focused on Europe, especially when you consider that 84% of US outflows came from investors selling short positions.”
