Digital Asset Products See $528M in Outflows Amid US Recession Fears: CoinShares
Digital asset investment products saw outflows amounting to $528 million last week, marking the first downturn in four weeks.
The exodus is believed to be a response to mounting concerns over a potential recession in the United States, compounded by geopolitical uncertainties and consequent widespread liquidations across various asset classes, CoinShares said in a recent report.
The report noted that trading volumes in exchange-traded products (ETPs) reached $14.8 billion, constituting a lower-than-average share of the total market at 25%.
After Friday’s market close, the digital asset market saw a correction that resulted in a substantial $10 billion decline in total ETP Assets under Management (AuM).
Geographically, the bulk of the outflows were concentrated in the US, with outflows totaling $531 million.
Germany and Hong Kong also experienced outflows amounting to $12 million and $27 million, respectively.
Conversely, Canada and Switzerland seized the opportunity presented by price weaknesses, recording inflows of $17 million and $28 million, respectively.
According to CoinShares, digital asset investment products saw their first outflow of funds in four weeks, totaling $528 million. CoinShares believes this is a response to the US recession, geopolitical concerns and widespread market liquidation. Bitcoin funds outflowed $400…
— Wu Blockchain (@WuBlockchain) August 5, 2024
Bitcoin encountered significant outflows totaling $400 million, a stark reversal following five consecutive weeks of inflows.
Concurrently, short-bitcoin products observed measurable inflows for the first time since June, amounting to $1.8 million.
Similarly, Ethereum witnessed outflows totaling $146 million, contributing to net outflows of $430 million
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