Bitcoin Bears the Brunt of Growing Pessimism With $630M Outflows
Digital asset investment products experienced a second consecutive week of outflows shedding $1.2 billion which amounted to $584 million.
According to CoinShares, this could potentially be a result of the pessimism amongst investors regarding potential Fed interest rate cuts this year.
Altcoins See Inflows Amid Market Weakness
Bitcoin bore the brunt and remained the primary focus with $630 million in outflows, although short positions did not increase significantly, as per the latest edition of CoinShares Digital Asset Fund Flows Weekly Report.
Further outflows of US$584m highlight a true correction is underway.
Ethereum which has seen increased investor interest this quarter did not escape the negative sentiment and recorded $58 million in outflows over the past week. Interestingly, some altcoins benefited from recent price weakness. These include investment products designed for Solana, Litecoin, and Polygon at $2.7 million, $1.3 million, and $1 million respectively.
During the same period, XRP and Chainlink-based investment products also witnessed minor inflows of $0.7 million and $0.3 million, respectively.
The Europe-focused investment firm noted that investors likely viewed the downturn in the altcoin market as a chance to buy at lower prices, as evidenced by the $98 weekly million into multi-asset products. This trend suggests that some market participants are taking advantage of the recent weakness to diversify their crypto holdings.
Switzerland and Brazil Emerge as Outliers
Trading activity in crypto ETPs hit a low point last week, with global volumes reaching only $6.9 billion. The report stated that this is the smallest figure since the launch of spot Bitcoin ETFs in January this year. The US led the outflows with $475 million, while Canada followed suit with $109 million in weekly outflows.
Next up were Germany and Hong Kong with $24 million and $19 million in outflows, respectively. Sweden also noted minor outflows over the week with $5.3 million.
Switzerland and Brazil, on the other hand, bucked the negative trend, recording inflows of $39 million and $48.5 million, respectively.
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