Crypto Outflow Hits $417M 8-Week As Investor Cautiousness Persists

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On June 12, European cryptocurrency investment firm CoinShares released its latest weekly report on digital asset fund flows, revealing that cryptocurrency investment products saw outflows of 88 million. dollars last week. The substantial drawdown added to the ongoing eight-week outflow streak, which now totals $417 million. CoinShares analysts attributed this current trend to monetary policy considerations, as interest rate hikes show no signs of abating, prompting investors to remain cautious.

Digital asset investment products have seen a substantial decline over the past 2 months. Source: CoinShares

Over the past week, Ether (ETH) commodities saw $36 million in outflows, marking the largest weekly outflows for the asset since the Ethereum merger in September 2022.

Meanwhile, Bitcoin (BTC) investment products recorded outflows totaling $52 million during the analyzed period. This brings the eight-week cumulative cash outflow for Bitcoin to $254 million, which is approximately 1.2% of total assets under management (AUM). Additionally, short Bitcoin products saw outflows of $1.1 million, with seven-week outflows accounting for 44% of the AUM.

Altcoins, on the other hand, have seen mixed fortunes during this period. Minor inflows were seen for Litecoin (LTC), XRP (XRP) and Solana (SOL), while Polygon (MATIC) saw outflows. Interestingly, overall, altcoins have seen inflows year-to-date (with the exception of Tron), unlike Bitcoin and Ethereum, observed CoinShares report author James Butterfill.

Interestingly, 87% of releases were concentrated within a single vendor, indicating a regional impact. Most of these outflows came from North America, while Switzerland recorded minor inflows of $9.2 million. In contrast, Germany recorded outflows of $9.4 million.

Related: Bitcoin and Some Altcoins Show Resilience Even as Crypto Market Selloff Continues

Despite regulatory pressures and concerns surrounding the cryptocurrency industry, the digital asset market has shown remarkable resilience, with the total crypto market maintaining its market capitalization of over $1 trillion. The relative resilience of altcoins suggests that investors have diversified their exposure to cryptocurrencies despite concerns over regulatory crackdowns on assets considered securities.

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