In a week of small-scale exits in the crypto-asset investment products market, Bitcoin stood out as a resilient player as investors showed their confidence in the leading cryptocurrency. CoinShare’s weekly report reveals that despite the negative mood over the past seven weeks, Bitcoin has managed to attract a total of US$3.8 million in entries, providing a glimmer of optimism in an otherwise beset market. Meanwhile, it is seen that MATIC and ETH are experiencing exits. Here are the details…
This week, there was an outflow of funds
There have been relatively small outflows of $11.2 million in the crypto-asset investment products market. This consistent wave of negative emotions has totaled $342 million in the past seven weeks. However, it is important to note that digital asset investment products remained in a net entry position with a total of $165 million year-to-date. This shows that despite the recent fluctuations, investors still see potential in the crypto market, but their actions are heavily influenced by regulatory uncertainties.
Last week perfectly exemplifies the ups and downs that investors in this space are going through. Earlier in the week, there was a significant expectation of the approval of a spot ETF (Exchange Traded Fund) in the United States, which would be an important milestone for the industry. However, these hopes were dashed when it was announced that there would be a delay for all other spot ETF filings, highlighting the ongoing challenges and uncertainties regarding cryptocurrency regulation.
MATIC sees ETH sell-off: SOL suffered a breakout
Despite the relatively small outflows in investment products, trading volumes remained extremely high throughout the week, totaling an impressive US$2.8 billion. This figure represents a staggering 90% increase over the year-to-date average and highlights the continued interest and participation of investors in the crypto market. However, not all news in the cryptocurrency market is positive. Short Bitcoin investment products saw $3.3 million outflows for the 19th week in a row. This stable trend contributed to the decline in total assets under management (AuM) by 48% from this year’s peak.
Altcoins also suffered from the drop in market sentiment, with Polygon and Ethereum witnessing notable exits of $8.6 million and $3.2 million, respectively. These exits highlight the prevailing caution among investors who are digging their holdings away from these altcoins. In stark contrast, Solana had a remarkable performance, attracting a total of $0.7 million for the ninth week in a row. The $26 million year-to-date inflow for Solana shows that it is currently the most preferred altcoin among investors.
