Investors in the US pulled out a significant $145 million from digital assets last week. This data indicated the investors’ vigilance towards digital currency. Investors are continuing to exercise caution when it comes to digital assets, possibly due to the recent stall in price growth. Despite a slight increase in trading activity, investment products like ETP/ ETFs saw a decrease in activity compared to the overall market.
A moment of caution: Digital assets investment products see decreased investment
Investors are becoming more cautious, according to the latest report by CoinShares. Last month, digital asset investment products accounted for 40% of total volumes on reputable exchanges, but that number dropped to 31% last week. This decrease comes on the heels of a record-breaking year-to-date inflow of $13.8 billion, surpassing the $10.6 billion mark set in 2021.
The US saw the largest outflows, with $145 million leaving the market, followed by Canada and Switzerland with $6 million and $5.7 million, respectively. Sweden also experienced outflows of $5.2 million. However, investors in Germany took a different approach, investing $29 million last week, likely seeing the recent price declines as an opportunity to buy in.
Crypto investment products see mixed results
Bitcoin had a mixed week, with $110 million leaving but $555 million flowing in for the month. Short-bitcoin investments gained $1.7 million, breaking a three-week losing streak.
Ethereum struggled, with $29 million leaving for the fifth week in a row. Solana also saw $3.6 million leave its market.
Other digital assets fared better, with Decentraland, Basic Attention Token, and LIDO gaining millions. Litecoin, Polkadot, and XRP saw smaller gains. Investors are seeking opportunities in different assets, with mixed results. (Source: CoinShares)
