Europe and the US Witness Divergent Sentiment as $9 Million Flows Out: CoinShares

According to CoinShares’ latest “Digital Asset Fund Flows Weekly Report,” digital asset investment products experienced outflows for the sixth consecutive week, totaling $9 million. While this amount is notably lower than the previous week’s significant outflows, trading volumes remained sluggish at just $820 million, well below the year-to-date average of $1.3 billion.

Continued Weekly Outflows

The report highlights that Bitcoin saw minor outflows for the third consecutive week, amounting to $6 million. Additionally, short-Bitcoin products experienced outflows of $2.8 million. CoinShares notes that the $15 million influx into short-Bitcoin products earlier this month seems to be an isolated occurrence.

Over the last 22 weeks, outflows have exceeded 78% of the assets under management (AuM), indicating a persistent trend of investors abandoning their short positions.

Ethereum, the largest altcoin, faced its sixth consecutive week of outflows, totaling $2.2 million. Multi-asset investment products have also witnessed consistent outflows this year, reaching a year-to-date total of $32 million.

However, CoinShares highlights that investors are showing increasing discernment in the altcoin space, with continued inflows into XRP and Solana, totaling $0.66 million and $0.31, respectively.

Regional Sentiment Divergence

Similar to the previous week, there is a noticeable contrast in sentiment across different regions. European investors displayed a bullish attitude, investing a substantial $16 million, taking advantage of perceived opportunities resulting from regulatory setbacks.

On the other hand, the investor base in the US remained apprehensive, withdrawing $14 million. This may reflect concerns stemming from recent developments, such as regulatory uncertainties and enforcement actions by the Securities and Exchange Commission (SEC) against prominent crypto companies like Binance and Coinbase.

This divergence in investment behavior underscores the complex interplay between global economic dynamics and the differing outlooks of investors in various geographic markets.

Editor Notes

It is interesting to observe the contrasting sentiment between Europe and the US in the digital asset market. While European investors see opportunities in regulatory setbacks, US investors remain cautious due to regulatory uncertainties and enforcement actions. This highlights the importance of staying up-to-date with regulatory developments and understanding the market sentiment in different regions.

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