With $33 million worth of weekly outflows, Bitcoin (BTC) investment products remained under pressure after the crypto asset failed to break above $43,000. Institutional investors pulled money out of the crypto products and invested in safe-haven assets last week.
In total, the digital asset investment products have seen outflows worth $47 million in the past week, the second consecutive week of outflows. Apart from BTC, Ethereum witnessed outflows during the mentioned period.
The crypto outflows predominantly came from the North American digital asset services providers. Due to the weekly outflows, the overall value of global digital assets under management decreased slightly to $53.6 billion.
"Digital asset investment products saw outflows for the second consecutive week, totaling US $47m last week. The same trend continued with outflows predominantly coming from North American providers, with outflows comprising 98%while flows in Europe were broadly flat. We believe the recent negative sentiment in North America is due to continued jitters over the regulation and geopolitical issues caused by the Ukrainian conflict. Since the conflict began, we have seen trading volumes rise by 160% and 150% in Ukraine and Russia, respectively,” CoinShares highlighted in its report.
Bitcoin investment products were hit by record outflows during the first few weeks of 2022. While the downtrend is still there, outflows have been on the decline since the start of March.
Altcoins
Bitcoin and Ethereum account for more than 90% of global digital assets under management (AUM). However, altcoins are slowly making their presence felt in the global crypto ecosystem. A similar trend was observed across institutional crypto inflows. During the recent week, XRP, Solana (SOL) and Polkadot (DOT) have seen decent inflows.
“In contrast, most other altcoins saw inflows last week. Notable were XRP, Polkadot and Solana with inflows totaling US $1.1m, US $0.8m, and US $0.7m, respectively,” the report added.
