The summer period’s lackluster trading activity is evident as digital asset investment products recorded outflows of $107 million this week. The profit-taking has gathered tremendous pace lately, with weekly trading volumes in investment products 36% below the year-to-date average.
The wider on-exchange market has experienced a more significant decline, with volumes down 62% relative to the year-to-date average, according to the latest edition of CoinShares’ weekly report on digital asset fund flows.
- Institutional investors have continued to focus on Bitcoin and witnessed outflows of $111 million. This marks the largest weekly outflows since March as regulatory tensions escalated in the US.
- CoinShares also revealed that the outflows into short bitcoin have stopped for the first time in 14 weeks, indicating that institutional investors have stopped betting against crypto despite the summer doldrums.
- Ethereum, too experienced outflows amounting to a total of $6 million, contributing to a combined outflow of $117 million for both Bitcoin and Ethereum in the past week.
- There is an apparent improvement in sentiment towards altcoins, which has helped counterbalance the outflows in Bitcoin and Ethereum.
- Solana witnessed its most significant influxes, reaching a total of $9.5 million, representing the highest amount of weekly inflows since March 2022.
- Noteworthy highlights included XRP and Litecoin, which experienced inflows of $0.5 million and $0.46 million, respectively. While Ripple’s partial win against the US Securities and Exchange Commission (SEC) can be attributed to renewed bullish sentiment for XRP, the recent halving event can be deemed as a catalyst for Litecoin’s inflows.
- On the other hand, Uniswap and Cardano encountered outflows of $0.8 million and $0.3 million, respectively.
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