Overview

Investment products have recorded outflows for the sixth consecutive week, according to a recent report by CoinShares. Last week, the market experienced an outflow of $9 million, with sales reaching a low of $820 million. This amount is significantly below the average of $1.3 billion.

Regional Sentiment

There is a noticeable difference in sentiment from a regional perspective. In Europe, capital inflows reached $16 million as investors view recent regulatory setbacks as an opportunity. On the other hand, US investors withdrew $14 million due to disruptions in the local cryptocurrency market.

“The difference in sentiment from a regional perspective was evident this week, with inflows to Europe totaling US$16 million, with investors seeing the recent regulatory disappointment as an opportunity. US investors withdrew US$14 million.”

– CoinShares report

Bitcoin and Ethereum Performance

Bitcoin-based products have seen outflows for three consecutive weeks, with a recent outflow of $6 million. Interestingly, there was a surprising inflow of $15 million into short Bitcoin (BTC) positions. This contrasts with the trend of investors liquidating their short positions, which accounted for 78% of assets under management (AuM) over the past 22 weeks.

Ethereum (ETH) has experienced capital outflows for six weeks in a row, totaling $2.2 million. Other altcoin investment products have also struggled, with a steady stream of outflows amounting to $32 million this year. However, there have been consistent inflows into XRP and Solana (SOL), amounting to $0.66 million and $0.31 million, respectively, suggesting growing investor interest in these altcoins.

Conclusion

Investors continue to show caution in the cryptocurrency market, with investment products witnessing ongoing outflows. While Bitcoin and Ethereum face challenges, certain altcoins like XRP and Solana have attracted inflows. It remains crucial for investors to stay informed about market trends and regulatory developments.