Generative Data Intelligence

Europe and the US Show Polarized Sentiment Amidst $9 Million Outflows: CoinShares

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For the sixth straight week, digital asset investment products experienced outflows, amounting to $9 million in the previous week. While this is significantly lower than the previous week which was characterized by sour investor sentiment with extensive outflows, the weekly trading volumes remained sluggish at just $820 million, significantly below the year-to-date average of $1.3 billion.

This essentially mirrored the broader trend of low trading volumes in the digital asset market.

6th Consecutive Weekly Outflows

According to the latest edition of CoinShares’ “Digital Asset Fund Flows Weekly Report,” Bitcoin’s minor outflows continued for the third week in a row, reaching $6 million.

Short-Bitcoin products also experienced outflows amounting to $2.8 million. The one-week influx of $15 million into short-Bitcoin this month appears to be an isolated occurrence, according to the digital asset manager’s findings.

Over the last 22 weeks, outflows have surpassed 78% of assets under management (AuM), indicating that investors are persistently abandoning their short positions.

The world’s largest altcoin, Ethereum, faced its sixth consecutive week of outflows totaling $2.2 million. Multi-asset investment products have seen a similar consistent trickle of outflows this year, with the year-to-date total standing at $32 million.

CoinShares further noted that investors appear to be increasingly becoming more “discerning” in the altcoin space, with continued inflows into XRP and Solana totaling $0.66 million and $0.31 million, respectively.

Regional Sentiment Divergence

Much like the preceding week, the current one also showcased a notable contrast in sentiment across different regions. Investors exhibited a bullish attitude toward Europe, pouring in a substantial $16 million amidst what they perceived as a chance to capitalize on regulatory setbacks.

Conversely, the US investor base remained apprehensive, withdrawing $14 million, possibly reflecting lingering concerns stemming from recent developments, including lack of clarity in terms of regulations and the Securities and Exchange Commission’s (SEC) enforcement actions against several prominent crypto companies, like Binance and Coinbase.

This divergence in investment behavior underscores the complex interplay of global economic dynamics and the distinct outlooks held by investors in various geographic markets.

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