- Digital asset investment products entered for the second week in a row last week.
- Despite the negative sentiment, there was no effect due to the increase in the BTC price.
In a new report, CoinShares, a digital asset investment firm, informed of A significant shift in investor sentiment towards cryptocurrencies. Negative sentiment re-entered the market after several weeks of price increases for many digital assets, resulting in two consecutive weeks of digital asset investment product exits.
Investment products in digital assets in the last week, according to CoinShares
“Last week there was an outflow of $32 million, the largest since December 2022.”
The report, published on February 20, suggested that investors have become wary of further price movements, prompting them to pull their funds out of the market to hedge against a sudden drop in prices.
The change in sentiment contrasts with the bullish outlook that has prevailed over the past month for major digital assets such as Bitcoin (BTC) AND Ethereum (ETH) Increased inflows into these assets translated into significant price gains.
King of all effects? bitcoin carries an awkward load
According to the report, of the $32 million withdrawn from the digital asset investment market last week, top cryptocurrency BTC was hit the hardest, recording withdrawals of up to $25 million. This was 78% of the total amount withdrawn.
Last week, BTC saw a total withdrawal of $10.9 million. The recent outflow of $25 million brought King Coin’s total outflow to $35.9 million so far this month.
Interestingly, the case was different for short bitcoin investments. The asset class posted total inflows of $3.7 million last week, after posting a modest outflow of $3.5 million the previous week. Coinshare found:
“Short bitcoin investment products have seen inflows of $3.7 million and have seen some of the largest inflows to date of $38 million, second only to bitcoin at $158 million.”
Investors were split on altcoins
According to CoinShares, investor sentiment was positive and negative for altcoins. The report said that some assets saw inflows, while some posted outflows.
crypto assets like ETH, Cosmos (atom), Polygon (MATIC)AND Avalanche (AVAX) The outflows were $7.2 million, $1.6 million, $0.8 million, and $500,000, respectively. Rather, property, including AAVE, Ghost (FTM), Ripple (XRP), Binance Coin (BNB)AND Decenterland (MANA)All registered flows “between US$0.36 million and US$0.26 million.”
Here comes a ray of hope for digital assets
While negative sentiment permeated the broader market last week, CoinShares noted that it “was not expressed in the broader market.”
According to the report, despite the negative sentiments, the BTC price rebounded, bringing the coin’s total assets under management (AUM) to $30 billion, the highest level since August 2022.
“We think this is because ETP investors are less optimistic about recent regulatory pressures in the US relative to the broader market.”
CoinShares echoed the sentiment, commenting on what might have driven the price rise amid a decline in positive sentiment.