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Digital Asset Market Report: Bitcoin (BTC), Ethereum (ETH), Altcoin Outflows Reach Almost $500M in the Last 9 Weeks

Digital asset investment products have experienced significant outflows over the past weeks, totaling nearly $500 million, according to James Butterfill from CoinShares. Last week alone, there were outflows of $54 million, making it the eighth outflow in the past nine weeks, amounting to $455 million. Most of these outflows were from Bitcoin, which accounted for 85% of the total outflows, with $45 million leaving the market last week. The previous week’s short-bitcoin inflows were short-lived, as there were outflows of $3.8 million last week.

Ethereum, the leading smart contract platform, also saw outflows of $4.8 million last week, despite its appealing investment fundamentals and high demand for its staking yield. This continuous trend of outflows can be attributed to uncertain market conditions and has been ongoing for five consecutive weeks. The year-to-date net inflows have fallen to just $51 million from a high of $455 million.

The negative sentiment primarily stems from the US, which accounted for 77% of the outflows. Other countries like Germany, Canada, and Sweden have also been affected. However, the trading volumes increased slightly to $1 billion, marking a 42% rise compared to the previous week.

Bitcoin remains a popular investment product, with inflows of $12 million so far this month. Despite this, Ethereum, the second-largest cryptocurrency, faced significant outflows. Other altcoins such as BNB Coin and Polygon also experienced minor outflows of $0.3 million each. On the other hand, some altcoins like Solana, Cardano, and XRP saw inflows of $0.7 million, $0.43 million, and $0.13 million, respectively.

Additionally, blockchain equities also experienced outflows for the sixth consecutive week, totaling $9.6 million last week.

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