European Crypto Investment Firm Reports Ongoing Outflows

On June 12, the European cryptocurrency investment firm CoinShares published its most recent weekly “Digital Asset Fund Flows Report,” disclosing that cryptocurrency investment products experienced outflows of $88 million last week.

The significant outflow contributed to the ongoing eight-week run of outflows, which now total $417 million.

This ongoing trend has been attributed to monetary policy considerations by analysts at CoinShares, as interest rate increases show no signs of slowing down, prompting investors to remain cautious.

Ether products experienced $36 million in outflows during the previous week, the highest weekly outflows for the asset since the Ethereum Merge in September 2022.

During the period under review, Bitcoin investment products experienced outflows totaling $52 million.

This raises Bitcoin’s cumulative outflows over the past eight weeks to $254 million, or approximately 1.2% of total assets under management (AUM).

In addition, short-Bitcoin products experienced outflows of $1.1 million, accounting for 44% of AUM over seven weeks.

In contrast, altcoins manifested “mixed fortunes” during this period. Litecoin, XRP, and Solana experienced minor inflows, whereas Polygon experienced outflows.

In stark contrast to Bitcoin and Ethereum, James Butterfill, the author of a report by CoinShares, observed that, to date, altcoins, except for Tron, have experienced net inflows.

87% of the outflows were concentrated at a single provider, indicating a regional impact. Most of these outflows originated in North America, while Switzerland received $9.2 million.

Germany, however, endured outflows of $9.4 million.

Despite regulatory pressures and concerns surrounding the cryptocurrency sector, the digital asset market has demonstrated remarkable resilience, maintaining a market capitalization of over $1 trillion.

Despite concerns regarding regulatory crackdowns on assets deemed securities, the relative strength of altcoins suggests that investors have diversified their cryptocurrency exposure.