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- Digital asset investment products faced US$173m in outflows for the fourth consecutive week.
- Bitcoin and Ethereum led withdrawals, while XRP and Solana continued to attract capital.
- Regional sentiment diverged, with the US seeing heavy outflows and Europe and Canada recording inflows.
According to the report, crypto and digital asset investment products experienced a fourth straight week of withdrawals, totalling US$173m. Over the past four weeks, investors pulled US$3.74bn from these products. The week began positively with US$575m in inflows.
However, selling pressure returned, leading to US$853m in outflows. Investor sentiment improved slightly at the end of the week after weaker-than-expected CPI data, resulting in US$105m in inflows. Trading activity also slowed.
Exchange-traded product volumes fell sharply to US$27bn. This is less than half the record US$63bn reported the previous week. Analysts note that lower trading volumes often coincide with cautious market sentiment and limited appetite for risk.
Europe and Canada Attract Crypto Capital as US Withdraws
Flows indicated a high degree of differentiation between the US and the rest of the regions. Investors in the US withdrew 403m$. In contrast, Europe and Canada received a total of 230m$. Germany had the largest inflow of 115m$, followed by $46.3m in Canada and 36.8m$ in Switzerland.
The data shows that the US is cautious due to uncertainty in the macro environment. In contrast, the Europe and Canadian markets have received new funds, indicating the success of crypto investment product marketing in these regions.
The largest outflows were in Bitcoin, with 133m$ withdrawn from the asset class. Short Bitcoin investment products have also seen outflows, totaling 15.4m$ over the last two weeks. The trend usually occurs around market lows as investors close their positions due to weak market sentiment.
Ethereum Faces $85M Outflow While XRP and Solana Gain
Ethereum followed suit, recording outflows of $85.1m. Other products, such as Hyperliquid, also witnessed lower outflows of $1m. However, some altcoins are seeing increased investor interest. XRP is seeing inflows of $33.4m. Similarly, Solana is also seeing $31m in inflows.
Chainlink is also seeing $1.1m in inflows. Analysts believe that this is indicative of investors showing confidence in some of these altcoins, despite the overall negative sentiment in cryptocurrencies.
Large-cap assets are seeing increased outflows, while some altcoins are seeing positive investor sentiment. Regional markets also show that there are pockets of increased investor confidence in crypto investment products.
Also Read: Bitcoin Slides to $60K as Tech Stocks Sink, Raising Fresh Store-of-Value Debate
