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Digital Asset Investment Products saw Outflows for the Sixth Consecutive Week

Digital Asset Investment Products saw Outflows for the Sixth Consecutive Week

According to a new report from CoinShares, institutional crypto investment products experienced their sixth consecutive week of outflows, losing nearly $95 million last week, despite the overall rally in the crypto market.

The Digital Asset Fund Flows Weekly Report reveals that digital asset investment products have experienced a total of $406 million in outflows for the past five weeks, representing 1.2% of total assets under management (AuM).

The report suggests that the contrarian positions taken by institutional investors may be due to a liquidity necessity rather than a bearish market view.

While the outflows were in stark contrast to the broader market, the report notes that it was likely due, in part, to the need for liquidity rather than negative sentiment.

Bitcoin (BTC) products suffered the heaviest hit of outflows, losing $112.8 million, while short-BTC products saw inflows. CoinShares suggests this sentiment is contrarian relative to the rest of the crypto market. Still, it may be driven, in part, by the need for liquidity during this banking crisis. A similar situation was seen in March 2020 when the COVID-19 pandemic first hit.

coinshares report

Altcoins also saw mixed results. While Ethereum (ETH) suffered $12.7 million in outflows, Solana (SOL), Litecoin (LTC), and Polygon (MATIC) all enjoyed $0.2 million in inflows, respectively. XRP products experienced $0.4 million in inflows.

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Despite the outflows, the overall trend for digital assets remains positive, with an increasing number of institutional investors looking to invest in crypto. The report notes that total assets under management for digital assets reached a new all-time high of $64.7 billion in February 2022, up from $42 billion in December 2021.

Furthermore, the report suggests that the market is likely to continue growing as more investors look for alternatives to traditional investments in light of global economic uncertainty.

Andrey Kunev

Reporter at CoinsPress

Andrey Kunev is a knowledgeable cryptocurrency content creator passionate about the crypto market. With extensive experience in market analysis and investment reporting, Andrey is a valuable asset to the CoinsPress team. As a frequent contributor, he offers insightful and comprehensive coverage of market trends, price fluctuations, and new advancements in cryptocurrency. Whether you're a seasoned investor or just getting started, Andrey's clear and concise writing offers a comprehensive look at the current state of the crypto market and its prospects. Stay up-to-date with CoinsPress's expert analysis and commentary on all things cryptocurrency.

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