Crypto Investment Products See 6th Consecutive Week of Outflows

The week ending September 24 marked the sixth consecutive week of outflows for crypto investment products. Last week, digital asset outflows from crypto investment products reached $9 million, according to data provided by Coinshares.

Bitcoin experienced its third consecutive week of outflows, with $6 million in outflows during the past week. Outflows from short Bitcoin positions totaled $2.8 million.

In contrast, Ethereum experienced its sixth consecutive week of outflows, with $2.2 million leaving the network during the past week.

Weekly crypto asset flows. Source: CoinShares

Other altcoins notably XRP and Solana have gained traders’ confidence with net inflows of $0.66 million and $0.31 million, respectively, while the largest altcoin ETH, experienced its sixth consecutive week of outflows.

The report noted that investors are becoming more discerning in the altcoin market as XRP and Solana continue to attract capital. Based on regional activities, the report revealed that the sentiments of European and American traders differed.

This was demonstrated by the $16 million inflows into European crypto investment products and the $14 million outflow from U.S. investment products.

The regional disparity was attributed to the uncertainty surrounding crypto regulations and the Securities and Exchange Commission’s (SEC) recent actions against crypto companies.

The report disclosed that weekly trading volumes fell below $820 million in 2023, significantly below the average of $1.16 billion. The recent market report on digital asset flow from CoinShares reflects the current pessimistic market sentiment.

Since the FOMC meeting, in which the Fed decided not to raise interest rates for the quarter, the Bitcoin price has been largely stagnant, caught below a key resistance level of $27,000.

Moreover, the Mt. Gox creditor’s payout delay also played a significant role in the price action last week, but BTC was largely unaffected by both of these major market events.