According to the latest CoinShares Digital Asset Fund Flows Weekly Report, digital asset investment products experienced a cooling trend, with minor outflows totaling $11.2 million. This extends the seven-week period of negative sentiment, resulting in a cumulative outflow of $342 million. However, Bitcoin witnessed inflows during this time.
Bitcoin saw inflows of $3.8 million, while short Bitcoin products continued to experience outflows for the 19th consecutive week, totaling $3.3 million. The assets under management (AuM) for short Bitcoin products have declined by 48% from this year’s peak.
Throughout the year, digital asset investment products have maintained a net inflow position of $165 million. However, investor flows have been subject to significant fluctuations, largely influenced by expectations and concerns surrounding digital asset regulations.
The past week exemplified this rollercoaster ride, with initial high expectations for the approval of a spot ETF in the United States, followed by disappointment when it was announced that other spot ETF applications would face delays. Despite this turbulent sentiment, trading volumes remained remarkably high, reaching $2.8 billion for the week, which is 90% above the year-to-date average.
On the other hand, altcoins experienced outflows, with notable losses in Polygon and Ethereum, amounting to $8.6 million and $3.2 million, respectively. However, Solana continued to attract investor interest, with inflows for the ninth consecutive week totaling $0.7 million. Among altcoins, Solana has received the most inflows this year, amounting to $26 million.
Blockchain equities also faced outflows for the fourth consecutive week, totaling $25 million. As the digital asset landscape remains dynamic and influenced by regulatory developments, investors continue to navigate a challenging and volatile market.
These findings highlight the ever-changing nature of the cryptocurrency market, where investor sentiment is highly susceptible to regulatory changes. Despite recent outflows and concerns, the crypto market continues to witness significant trading activity, demonstrating its resilience and potential for further expansion.