Investing
Digital Asset Investment Products Saw Outflows of $55M Last Week: Report
Published:
Digital asset investment products saw $55 million in outflows last week, reversing the prior week of positive flows, a new report reveals. The shift comes amid deteriorating investor sentiment triggered by a sector-wide market downturn.
Bitcoin Funds See $42M in Outflows
Outflows in digital asset investment funds rose to $55 million last week amid the industry-wide downturn that sent crypto prices tumbling and pushed market volumes significantly below average. According to CoinShares, one factor that may have contributed to rising outflows are recent reports suggesting that a decision by the US Securities and Exchange Commission (SEC) on a spot Bitcoin exchange-traded fund (ETF) is not imminent.
Bitcoin accounted for most outflows at $42 million, marking a sharp U-turn from the week prior. Meanwhile, short-Bitcoin investment products registered outflows for the 17th straight week, totaling $2.2 million.
Apart from Bitcoin, major altcoins also saw noteworthy outflows. Notably, Ethereum-related funds registered $9 million, while Polygon, Litecoin, and Polkadot saw outflows of US$0.9m, US$0.6m, and US$0.5m, respectively.
On a regional basis, the negative fund flows were primarily concentrated in Canada and Germany, with 36 million and $11 million in outflows last week, respectively. Switzerland, on the other hand, recorded inflows of $3.5 million.
Why Are Crypto Prices Down?
The steep downturn in fund flows comes amid the latest crash in crypto prices that pushed the global cryptocurrency market cap from $1.22 trillion to $1.09 trillion over the past week. Bitcoin was on track to record its worst weekly slump since the FTX collapse in November 2022 on Thursday, sending the leading cryptocurrency to as low as $25,392 on that day.
Investors hoped a court decision in the legal dispute between investment management firm Grayscale and the SEC could reverse the losses. Notably, DCG subsidiary Grayscale strives to convert its $12 billion GBTC bitcoin trust into an ETF, which could garner significant attention among institutional investors.
The SEC initially rejected the application, leading to Grayscale filing the lawsuit to overturn the decision. The crypto community hoped to learn the court’s verdict on Friday, but no decision on the lawsuit was announced.
This article originally appeared on The Tokenist
The #1 Thing to Do Before You Claim Social Security (Sponsor)
Choosing the right (or wrong) time to claim Social Security can dramatically change your retirement. So, before making one of the biggest decisions of your financial life, it’s a smart idea to get an extra set of eyes on your complete financial situation.
A financial advisor can help you decide the right Social Security option for you and your family. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you.
Click here to match with up to 3 financial pros who would be excited to help you optimize your Social Security outcomes.
Have questions about retirement or personal finance? Email us at [email protected]!
By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.
By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
