In the ever-fluctuating world of digital asset investments, Bitcoin once again takes center stage as outflows from various investment products continue for the sixth consecutive week. According to the CoinShares report, these outflows have reached a total of $39 million, contributing to a larger trend of declining assets under management (AuM) amounting to a staggering $272 million.
Bitcoin’s AuM Drops To $144m
With a focus on Bitcoin, the outflows from this leading cryptocurrency reached $11 million, indicating a significant movement of funds away from the digital asset.
However, the most striking development lies in the outflows from short-bitcoin positions, which have experienced a more dramatic decline, accounting for 36% of the total AuM.
The overall decline in AuM has been particularly pronounced for short-bitcoin, witnessing a substantial drop from its mid-May peak of $198 million to a current peak of $144 million.
This 27% decline is primarily attributed to the continuous outflows experienced by short-bitcoin, whereas long-bitcoin, in contrast, only witnessed a minor 3% decrease in AuM during the same period.
In addition to Bitcoin, other altcoins have also suffered outflows. Notably, Algorand experienced a significant loss, with 65% of its AuM outflowing last week, amounting to approximately $8 million.
Ethereum, another prominent digital asset, saw outflows reaching $5.9 million. However, Litecoin and Uniswap were exceptions to this trend, as they experienced minor inflows of $0.5 million and $0.2 million, respectively.
Furthermore, the impact of the negative sentiment surrounding digital assets extended to blockchain equities, which witnessed minor outflows totaling $3.4 million last week.
Although the outflows from digital asset investment products are of concern, it is worth noting that trading volumes remained relatively low.
They accounted for 58% of this year’s average, which mirrors the broader trend observed in the digital asset space, where volumes were only 38% of the average.
In relative terms, however, investment products exhibited higher activity levels compared to the overall market, with last week’s volumes representing almost 8% of the total market, compared to the usual average of 2%.
However, as the crypto market continues to navigate through volatile times, investors and market participants will closely monitor the developments surrounding Bitcoin and other digital assets.
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