Digital Asset Market Shrinks As Fund Outflows Reach $200M: CoinShares

On May 15, European crypto investment firm CoinShares published its latest “Digital Asset Fund Flow Report”, which revealed That digital asset investment products experienced another week of consecutive outflows from the market totaling $54 million. CoinShares reported that this “brings total outflows to US$200m, representing 0.6% of total assets under management (AuM).”

According to the report, $38 million in Bitcoin (BTC) funds were seen withdrawn. In the last four weeks, the total BTC outflows were $160 million, accounting for 80% of all outflows. Furthermore, when outflows from short positions on bitcoin were combined, the total value of outflows related to this asset alone reached $201 million. These numbers strongly highlight that recent investor activity has been highly focused on bitcoin.

The report also states that multi-asset investments experienced outflows of $7 million last week. However, eight different altcoin assets saw significant growth in inflows, implying that investors are becoming “more adventurous and selective” in their investment choices.

Among altcoins, funds linked to Cardano (ADA), Tron (TRX) and Sandbox (SAND) attracted modest inflows of less than $1 million each. Binance (BNB) was the only altcoin to witness the outflow.

RELATED: Bitcoin Offers ‘Good Signs’ as Analysts Retain $40K BTC Price Target

A recent survey conducted by Bloomberg’s Markets Live Pulse indicates that in the event of a theoretical debt default in the United States, bitcoin could emerge as one of the top three assets, along with gold and the United States Treasury. This suggests that an appetite for bitcoin as a “digital gold” may emerge if investors doubt Washington’s ability to avoid default in the long run.

The Magazine: $3.4B Bitcoin in a Popcorn Tin: The Story of the Silk Road Hacker