On June 12, European cryptocurrency investment firm CoinShares published its latest weekly “Digital Asset Fund Flows Report”, revealing that cryptocurrency investment products saw withdrawals amounting to $88 million last week. The significant reduction added to the eight-week streak of negative numbers, which now stands at USD 417 million in withdrawals. The CoinShares team of analysts have attributed this trend to monetary policy considerations, as interest rate rises show no signs of slowing down, leading investors to remain cautious.
In the last week, Ether products (ETH) experienced withdrawals of $36 million, marking the largest weekly withdrawals for the asset since The Merge in September 2022.
For their part, investment products in Bitcoin (BTC) recorded withdrawals for a total of USD 52 million during the period analyzed. This brings the eight-week cumulative withdrawals for Bitcoin to $254 million, representing roughly 1.2% of total assets managed (AuM). In addition, short-term Bitcoin products saw $1.1 million worth of outflows, with withdrawals in seven weeks accounting for 44% of assets under management.
The altcoins, for their part, had unequal behaviors during this period. Minor deposits were observed in Litecoin (LTC), XRP (XRP) and Solana (SUN), while Polygon (MATIC) experienced withdrawals. “Interestingly, as a whole, altcoins have seen deposits so far this year (except Tron), in stark contrast to Bitcoin and Ethereum,” observed CoinShares report author James Butterfill.
Interestingly, 87% of the recalls were concentrated in a single provider, indicating a regional impact. Most of these withdrawals originated from North America, while small deposits of $9.2 million occurred in Switzerland. For its part, Germany experienced outflows worth USD 9.4 million.
Despite regulatory pressures and concerns surrounding the cryptocurrency sector, the digital asset market has shown remarkable resilience, with the total cryptocurrency market maintaining its market capitalization of over $1 trillion. The relative resiliency shown by altcoins suggests that some investors have diversified their exposure to other cryptocurrencies despite concerns about regulatory action about which ones can be considered securities.
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