According to the latest edition of CoinShares’ weekly report, outflows in digital asset investment products reached $32 million last week, a level not seen since late December 2022.
The sentiment could be attributed to exchange-traded product (ETP) investors being less optimistic about recent regulatory pressures in the US relative to the wider market.
Outflow figures surged to $62 million the mid-way through last week, even as the sentiment improved significantly by Friday. Bitcoin was the most affected crypto asset during the turmoil in the market, experiencing an outflow of $24.8 million over the past week.
Short-bitcoin investment products, on the other hand, recorded inflows of $3.7 million during the same time while also witnessing some of the largest inflows YTD of $38 million, trailing behind only Bitcoin with $158 million.
Ethereum also bore the brunt of the negative sentiment and recorded an outflow of $7.2 million. Furthermore, blockchain equities saw six consecutive weeks of inflows, with the latest totaling $9.6 million, demonstrating a more “constructive sentiment” amongst market players.
The major catalyst due to the outflows last week was the New York financial regulator ordering Paxos to stop minting new Binance USD (BUSD) tokens after rumors that the US Securities and Exchange Commission (SEC) wanted to take enforcement action against the company.
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