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A Streak of Crypto Fund Outflows
Data from CoinShares has shown that the exodus of funds from digital asset investment products totaled $88 million in the last week.
CoinShares, a prominent European cryptocurrency investment firm, has released its recent "Digital Asset Fund Flows Report" on June 12. The report exposes an $88 million drain from cryptocurrency investment products within the past week. The continuous outflows, marking eight weeks in a row, have now reached an astounding total of $417 million. CoinShares analysts attribute this persistent trend to apprehensions regarding monetary policy as relentless interest rate hikes spark investor prudence.
Ether and Bitcoin Feel the Burn
Ether's investment products experienced an outflow of $36 million in the previous week, the largest weekly loss since the Ethereum Merge in September 2022.
In the same period, Bitcoin investment products suffered a setback of $52 million. This leads the eight-week aggregate outflows for Bitcoin to a whopping $254 million, roughly 1.2% of the total assets under management (AUM). Additionally, products that short Bitcoin noted outflows of $1.1 million, with the seven-week outflows accounting for 44% of AUM.
Altcoins: A Mixed Bag
During this phase, altcoins displayed inconsistent performance. While Litecoin, XRP, and Solana noticed minor inflows, Polygon had to face outflows. "Year-to-date, altcoins have shown an influx (except Tron), a contrast to the trends of Bitcoin and Ethereum," notes CoinShares' report author, James Butterfill.
Interestingly, a single provider was the source of a significant 87% of the outflows, pointing towards a regional influence. A majority of these outflows were rooted in North America. Conversely, Switzerland saw a slight inflow of $9.2 million, while Germany recorded outflows of $9.4 million.
Crypto Market Shows Resilience
Despite the regulatory uncertainties and apprehensions within the cryptocurrency sector, the digital asset market has displayed remarkable fortitude. The total crypto market has held its ground above a $1 trillion market cap. The relative tenacity exhibited by altcoins implies that investors have diversified their crypto holdings amid fears of regulatory clampdowns on assets considered securities.
