U.Today - In its recent report, leading European crypto assets manager CoinShares displayed the largest outflow of funds from exchange-traded products based on cryptocurrencies. However, even amid a dramatic dropdown, some large-caps managed to attract clients' investments.
Crypto funds register largest outflows since March, but XRP and LTC investors are optimistic
The net amount of funds in digital asset investment products saw a $168 million outflow. Markets have not seen such a panic since the March 2023 regulatory crackdown and collapses of crypto-friendly banks. Such calculations were revealed by CoinShares in its latest Volume 146: Digital Asset Fund Flows Weekly Report today, Aug. 29, 2023.Bitcoin-based funds suffered the worst: they are responsible for a $149 million outflow. At the same time, funds based on XRP, Cardano (ADA), Litecoin (LTC) and Solana (SOL) witnessed an inflow of funds.
XRP benefited the most: products based on this cryptocurrency logged a $500,000 inflow of capital. For the rest of the altcoins, this metric fluctuates between $100,000 and $400,000. Meanwhile, two altcoin heavyweights, Ethereum (ETH) and Binance Coin (BNB), witnessed an outflow of funds.
At the same time, investors are selling shares associated with Bitcoin (BTC) short positions, analysts highlighted:
As such, during a very painful August 2023, crypto-based funds witnessed a notable $277.6 million in outflows. In total, after several months, crypto-based funds allocated $32 billion in AUM, the report says.
All eyes on Bitcoin ETFs
Analysts at CoinShares think that the pessimism of investors should be attributed to delayed decisions on spot Bitcoin (BTC) ETF approval in the United States:Trading volume in this segment also plummeted: in August it was 16% lower than one year ago. Germany and Canada are two jurisdictions with the largest outflows of investors' funds.
As covered by U.Today previously, the status of the Bitcoin (BTC) spot ETF in the United States remains obscure. The SEC is pushing forward deadlines for the majority of already-filled requests.
Crypto bulls are sure that the potential approval of a Bitcoin Spot ETF can trigger the next rally in digital assets.