Investment products record outflows for the sixth week in a row.
According to a CoinShares report, the market saw an outflow of $9 million last week. Sales for the week were the lowest, amounting to $820 million. This figure is significantly lower than the average of $1.3 billion.
As was the case a week earlier, there is a divergence in sentiment from a regional perspective. Capital inflows reached $16 million in Europe, where investors see recent regulatory disappointment as an opportunity. At the same time, U.S. investors withdrew $14 million due to unrest in the local crypto market.
“A divergence in sentiment from a regional perspective was evident this week, with inflows into Europe totaling US$16m, where investors see recent regulatory disappointment as an opportunity. While U.S. investors pulled out US$14m,”CoinShares report states.
Bitcoin-based products experienced outflows for the third week in a row. Last week, there was an outflow of $6 million. The $15 million inflow into short Bitcoin (BTC) seems surprising to analysts as there have been outflows amounting to 78% of assets under management (AuM) over the past 22 weeks, suggesting that investors are continuing to liquidate short positions.
Ethereum (ETH) recorded capital outflows for the sixth week in a row, with outflows of $2.2 million. Investment products with other altcoins have also suffered this year, with a small but steady flow of investment outflows now standing at $32 million for the year.