Crypto investment products at asset managers such as CoinShares, Grayscale, 21Shares, Bitwise and ProShares faced a sixth consecutive week of outflows — with crypto funds shedding a further $9 million last week.
Outflows cooled considerably from the $54 million seen in the prior week, though they added to a ten-week streak of aggregated outflows that now reach $464 million.
The trend underscores caution in the market among investors, with divergence building from a regional perspective in response to the regulatory landscape, according to CoinShares research head James Butterfill in the European digital asset manager’s latest report.
“A divergence in sentiment from a regional perspective was evident this week, with inflows into Europe totaling $16 million, where investors see recent regulatory disappointment as an opportunity. While U.S. investors pulled out $14 million, seemingly in a continued funk over recent events.” Butterfill noted.
Trading volume also fell to $820 million for the week, down from over $1 billion in the prior week and significantly below the yearly average of $1.3 billion — mimicking a similar trend in the broader crypto market.
XRP and Solana inflows continue despite bitcoin and ether outflows
Bitcoin BTC +2.01% investment products recorded outflows for the third consecutive week, amounting to $6 million. Short-Bitcoin products also saw outflows of $2.8 million — suggesting investors are continuing to capitulate their short positions, Butterfill wrote. Short-Bitcoin outflows now represent a 78% reduction in those assets under management over the last 22 weeks.
Ethereum ETH -0.35% saw outflows for the sixth week in a row, totaling $2.2 million.
However, XRP +6.40% and Solana SOL +5.58% continued to buck the trend with inflows of $0.66 million and $0.31 million, respectively — indicating a more discerning approach to the altcoin space by investors looking for value, Butterfill noted.
On Friday, CoinShares launched a new hedge fund division — expanding its reach to U.S. investors. It appointed traditional asset management veteran Lewis Fellas to head the new initiative.
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