Corporate Exit Continues: Crypto Funds See Altcoin Outflows

Digital asset exchange-traded products (ETPs) experienced $2 billion in outflows last week, marking the largest weekly loss of the year. According to CoinShares, the outflows over the past seven days represent the largest weekly drop since February. The report attributes the pressure to uncertainty surrounding monetary policy and sales by major crypto investors.

Total outflows from digital asset investment products now reach $3.2 billion over three weeks. CoinShares reported that total assets under management have fallen from $264 billion at the beginning of October to $191 billion, a 27% decrease, due to this significant pressure.

Regional breakdowns reveal a stark contrast. The United States accounted for 97% of last week’s outflows, totaling $1.97 billion. Switzerland saw $39.9 million in outflows, while Hong Kong recorded $12.3 million. Germany bucked the negative trend, registering $13.2 million in inflows, making it the only strong-performing region.

Bitcoin (BTC) was at the center of the negative trend, experiencing $1.38 billion in outflows last week. CoinShares stated that Bitcoin outflows over the three-week period account for approximately 2% of total assets under management.

The situation was more challenging for Ethereum (ETH), with $689 million in outflows last week, representing 4% of its total managed assets. Solana (SOL) saw more limited outflows of $8.3 million, while XRP recorded $15.5 million.

Investors are seeking safe havens, leading to increased demand for multi-asset ETPs, attracting $69 million over the last three weeks. Short Bitcoin ETPs, reflecting market expectations for a downward trend, also saw significant inflows.

These data suggest ongoing caution and a shift in investment strategies within the digital asset market.

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.