Ethereum saw the worst performance since august 2022
For the third week in a row, investments in digital assets have seen a withdrawal of funds, totaling $30 million, though this represents a notable reduction from previous weeks. The trend for Ethereum remains negative, yet there's a slight improvement in the appeal towards Bitcoin among investors.
The most recent findings from CoinShares' Digital Asset Fund Flows Weekly highlight that, despite most providers experiencing small entries of funds, these were overshadowed by a substantial $153 million draining from Grayscale.
The report further reveals a 43% surge in trading activity compared to the previous week, reaching $6.2 billion. However, this figure still falls significantly short of the annual average trading volume of $14.2 billion, as noted by the asset management firm.
This past week displayed a keen interest in multi-asset and Bitcoin ETPs, which attracted $18 million and $10 million in inflows, correspondingly. Meanwhile, short-Bitcoin offerings saw a withdrawal of $4.2 million, hinting at a changing attitude among investors. Altcoins such as Solana and Litecoin captured inflows of $1.6 million and $1.4 million, respectively, with Chainlink and XRP also enjoying positive inflows at $0.6 million and $0.3 million.
Ethereum-based investment products faced the steepest decline in interest since August 2022, with outflows hitting $61 million, cumulating a two-week withdrawal of $119 million. This positions Ethereum as the asset with the most significant negative net flows for the year.
Notwithstanding the overall buoyant mood towards cryptocurrencies in the current year, blockchain stocks have been hit with $545 million in withdrawals, accounting for 19% of the total assets managed.
Looking at geographical distribution, the United States stands out with a remarkable $143 million in inflows. Brazil and Australia are also notable, with weekly inflows of $7.6 million and $3 million, respectively.
On the flip side, Germany, Hong Kong, Canada, and Switzerland have experienced notable outflows amounting to $29 million, $23 million, $14 million, and $13 million, accordingly, over the same timeframe. Sweden, too, saw a reduction in funds by $4.3 million.
