Digital asset investment products show huge churns of $168 million
Date: 2023-08-29 Author: Karina Ziganova Categories: CRYPTO PAYMENTS, IN WORLD
Last week, according to a report from CoinShares, there was the largest outflow of funds since March, amounting to $168 million in digital asset investment products.
Jim Butterfill, an analyst at CoinShares and the SEC, attributed the high deficit primarily to recent delays by the U.S. Securities Commission (SEC) in deciding on the large number of BTC ETF spot pending.
The U.S. Securities and Exchange Commission (SEC) this month delayed its decision to accept an application for the Ark 21 Shares Cellular Bitcoin/BTC ETF pending public opinion. Up to this point, the financial regulator has not provided updates on other applications.
Bitcoin and Ethereum traffic leads the way
The report shows that Bitcoin and Ethereum (ETH) are responsible for most of the outflow of digital assets. This was because the total external withdrawal of about 166 million dollars.
The massive outflow is another manifestation of the bearish sentiment that has been piercing since the crash of the cryptocurrency market on August 17th. At that moment, traders holding positions in the market lost more than $1 billion as a result of the fall in the value of BTC and ETH to multi-week lows.
To date, altcoins such as Cardano, Litecoin, and XRP have seen modest inflows ranging from $0.5 to $100,000. Investments in several assets, which have experienced constant outflows for several weeks, failed with a profit of $1.2 million last week.
As before, despite the prevailing bearish sentiment, investors have also reduced their short positions in bitcoin and have noted outflows in these products for 18 consecutive weeks. Last week, $4 million was withdrawn from this class of products, resulting in a total outflow of 89% of assets under management.
However, the outflow occurred against the backdrop of a market with very low trading volume. Overall, trading volume for the week was $1.3 billion, 16% below the average for this year alone.
North American and European investors dominated the sell-off in all regions of the country. German investors lead with an outflow of $68 million, while Canada comes in second with an average of $661 million. The US ranks in the top three with more than $19.5 million in outflows.
