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$17M Digital Asset Outflow Recorded Amid US Regulatory Concerns: CoinShares

Summary:
The negative sentiment in digital asset investment products reached the fourth week recording an outflow of million. Confirming the same, the latest edition of the CoinShares report stated, “The poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class.” Institutional investors are feeling the pressure as the US regulatory agency, the Securities and Exchange Commission (SEC), continued to target the crypto entities in the country. The outflows, however, have been minor this week compared to the figures in the past few weeks. A majority of these outflows were from Bitcoin totaling million, according to the fund manager’s report. On the other hand, short-bitcoin saw inflows for a third week totaling .8 million

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The negative sentiment in digital asset investment products reached the fourth week recording an outflow of $17 million. Confirming the same, the latest edition of the CoinShares report stated,

“The poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class.”

Institutional investors are feeling the pressure as the US regulatory agency, the Securities and Exchange Commission (SEC), continued to target the crypto entities in the country. The outflows, however, have been minor this week compared to the figures in the past few weeks.

  • A majority of these outflows were from Bitcoin totaling $20 million, according to the fund manager’s report.
  • On the other hand, short-bitcoin saw inflows for a third week totaling $1.8 million during the same period. The recent inflows failed to translate substantially for short-bitcoin assets under management (AUM) as it rose only by 4.2% YTD.
  • Contrastingly, long-bitcoin AUM was up by 36% YTD. This essentially indicated that short positions have not benefited some investors as expected.
  • Meanwhile, volumes across investment products were also recorded to be low at $844 million for the week.
  • A similar scenario was witnessed for the entire Bitcoin market volumes, averaging $57 billion. Notably, this is 15% lower than usual.
  • Altcoins noted minor inflows. Ethereum’s, for one, stood at $0.7 million, while Solana recorded $0.34 million inflows.
  • Binance and Cosmos’s outflows accounted for $0.38 million and $21 million, respectively.

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