Digital asset investment products faced significant outflows last week, totaling $59 million, with Bitcoin (BTC) experiencing the most substantial impact, according to recent data by Coinshares. Meanwhile, XRP investment products observed mild inflows during the same period, despite the broader crypto market's negative flows.
The outflows have contributed to a running total of $294 million in recent weeks. Bitcoin experienced outflows of around $69 million, while Ethereum (ETH) saw outflows of $4.8 million. The highest weekly outflows by provider were ETC Issuance GmbH, with an amount of $23 million, followed by Purpose Investments Inc ETF and ProShares ETFs/USA with outflows of $17 million and $13.5 million, respectively.
On a month-to-date basis, the total outflow for all assets reached $62.9 million. The negative sentiment also extended to blockchain equities, which recorded total outflows of $10.8 million for the fifth consecutive week, reflecting ongoing market uncertainty.
In contrast, XRP's investment products recorded inflows last week at a modest rate of $0.7 million ($700K). This positive trend for XRP persists despite the ongoing legal issues surrounding Ripple in the SEC lawsuit.
The report also noted inflows on short investment products, suggesting that investor sentiment remains low for the asset segment. Ongoing regulatory concerns over digital assets and recent dollar strength are believed to be contributing factors to this sentiment.
Trading volumes declined by 73% last week to only $754 million compared to the previous week. Investors appear to be closely monitoring the market ahead of crucial data expected to be released by the U.S. Federal Reserve this week.
Adding to the cautious sentiment are recent reports suggesting that FTX is seeking authorization to sell off assets worth $3.4 billion, including SOL, FTT, BTC, and ETH. This has created significant selling pressure on altcoins, particularly SOL tokens, causing investor concern about future market performance.
Despite the bearish weeks, all digital asset investment products have witnessed $104 million in inflows year-to-date. The cumulative AUM has also increased to $31.76 billion. Several firms, including BlackRock (NYSE:BLK) and WisdomTree, are pushing for a spot BTC ETF.
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