Largest Outflows on Record for Short Bitcoin
Blockchain equities also endured weaker sentiment last week.
Takeaways
- Digital asset investment products saw outflows totalling US$54m last week, representing the 3rd consecutive week of negative sentiment for the asset class.
- Bitcoin saw US$32m of outflows last week. While sentiment in the US turned markedly positive, with inflows of US$18m and the largest weekly outflows from short-bitcoin on record of US$23m.
- Blockchain equities also endured weaker sentiment last week, seeing outflows totalling US$7.3m.
Digital asset investment products saw outflows totalling US$54m last week, representing the 3rd consecutive week of negative sentiment for the asset class. Volumes for the broader digital asset industry remain half of what they were at the beginning of the year, while volumes in investment products are 16% above their year-to-date average.
Regionally, the majority of outflows were from Germany and Canada with US$27m and US$20m respectively.
Bitcoin was again the primary focus from investors, seeing US$32m of outflows last week. While sentiment in the US turned markedly positive, with inflows of US$18m and the largest weekly outflows from short-bitcoin on record of US$23m.
Investor activity in altcoins was unusually low, seeing minor outflows from Ethereum investment products of US$2.3m. While Solana was the only other altcoin to see any activity with inflows of US$3.4m, the second largest over the last 12 months.
Blockchain equities also endured weaker sentiment last week, seeing outflows totalling US$7.3m, the largest weekly outflows since the beginning of 2023. Given recent positive price performance in the sector we believe it is due to profit taking.
Contact James Butterfill at [email protected]
