Investor Caution Persists as Digital Asset Investment Products See $126M in Outflows
Digital asset investment products witnessed minor outflows amounting to $126 million in the past week as investors displayed hesitancy amidst a stalled positive price momentum.
While trading volumes did experience a slight increase from $17 billion to $21 billion on a week-on-week basis, activity in exchange-traded products (ETPs) and exchange-traded funds (ETFs) dropped relative to the overall market, according to a CoinShares report .
ETP/ETF activity accounted for 40% of total volumes on trusted exchanges over the past month but decreased to 31% last week, indicating the cautious approach adopted by investors.
The report added that Bitcoin experienced outflows of $110 million but maintained positive inflows of $555 million month-to-date.
Short-bitcoin, which had been witnessing outflows for the past three weeks, saw minor inflows of $1.7 million, likely capitalizing on the recent price weakness.
CoinShares: Digital asset investment products saw minor outflows totalling US$126m last week. Investors are seemingly hesitant since the positive price momentum has stalled. Ethereum suffered on a relative basis the most, with US$29m outflows last week, marking its 5th…
— Wu Blockchain (@WuBlockchain) April 15, 2024
On a relative basis, Ethereum suffered the most, with outflows of $29 million last week, marking its fifth consecutive week of outflows.
However, altcoins had a successful week, with several lesser-known names attracting inflows.
Decentraland, Basic Attention Token, and LIDO saw inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.
Regionally, sentiment remains polarized.
The United States recorded the largest outflows, totaling $145 million, followed by Switzerland and Canada with
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