Strong Dollar and Regulatory Woes Causing Negative Sentiment Among Institutions: CoinShares
Digital assets manager CoinShares says institutional investors are currently less optimistic about crypto due to a strong dollar and ongoing regulatory concerns in the United States.
In its latest Digital Asset Fund Flows Weekly Report, CoinShares finds that digital assets saw outflows of nearly $60 million last week, marking the fourth week of outflows in a row.
“Digital asset investment products saw outflows totalling US$59m last week, marking the fourth consecutive week of outflows, this run of outflows now totals US$294m and represents 0.9% of total assets under management (AuM).”
Says CoinShares,
“Inflows were also seen in short investment products, suggesting sentiment remains poor for the asset class. We believe continued worries over regulation of the asset class and recent dollar strength are the most likely reasons for this. Trading volumes also dropped significantly, by 73% in comparison to the prior week to just US$754m for the week.”
Bitcoin (BTC), as usual, took most of the outflows, at $69 million. CoinShares also noticed a large inflow into short-BTC products.
“… short-bitcoin saw its largest single week of inflows since March 2023, totaling US$15m. Timing wise this is interesting as the inflows in March also came at a time of heightened regulatory uncertainty.”
Ethereum (ETH), Solana (SOL), and multi-asset investment vehicles suffered outflows to the tune of $4.8 million, $1.1 million, and $0.8 million, respectively. XRP products reigned in $0.4 million in inflows.
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