Investor Hesitation Blamed as Crypto Investments See $942M Weekly Outflow: CoinShares

Investment products in digital assets witnessed a significant weekly outflow of $942 million, breaking the continuous seven-week streak of inflows reaching $12.3 billion.

According to the CoinShares, this shift can be attributed to investor hesitation.

Hesitant Investors Cause US ETF Inflows Dip

The latest edition of Digital Asset Fund Flows Weekly Report revealed that the trading volumes in Exchange-Traded Products (ETPs) remained high and reached $28 billion for the week. The figures, however, were two-thirds lower than the previous week’s figures.

Despite a recent price correction leading to a reduction of $10 billion in total assets under management (AuM), they still stand above the highs from previous cycles, currently at $88 billion.

CoinShares blamed the recent price correction on investor hesitancy, which resulted in significantly reduced inflows into new ETF issuers in the United States, amounting to only $1.1 billion. This partially offset the substantial outflows of $2 billion from incumbent Grayscale during the previous week.

The asset manager also stated that the “poor sentiment” wasn’t confined to the US alone. In fact, Sweden, Switzerland, Hong Kong, and Germany also experienced outflows of $37 million, $25 million, $35 million, and $4 million respectively, over the past week.

Decoupling from this widespread sentiment, Brazil and Canada, on the other hand, witnessed inflows totaling $9 million and $8.4 million, respectively, during the same period. Meanwhile, Australia settled for $1.4 million in weekly inflows.

Bitcoin Dominated 96% of The Flows

CoinShares’ data further revealed that investments focused on Bitcoin products experienced outflows of $904 million outflows, thereby accounting for 96% of the total flows. Products allowing traders to short Bitcoin saw only $3.7 million in weekly outflows.

Ethereum, Solana, and Cardano investment products were also hit by outflows during the same period, amounting to $34 million, $5.6 million, and $3.7 million, respectively. However, the remaining altcoin market performed positively, with net inflows reaching $16 million. Notably, Polkadot received $5 million, Avalanche $2.9 million, Litecoin $2 million, and XRP $1.2 million in inflows over the past week.