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On June 12, European cryptocurrency investment firm CoinShares released its latest weekly “Digital Asset Fund Flow Report,” which states that cryptocurrency investment products experienced an outflow of $88 million last week. The substantial drawdown has added to an ongoing eight-week run of outflows that currently stands at $417 million. Analysts at CoinShares attribute this ongoing trend to monetary policy considerations as interest rate hikes show no signs of slowing down, prompting investors to remain cautious.
Last week, Ether (ETH) products saw $36 million in fund outflows, the largest weekly asset outflow since the September 2022 Ethereum merger.
Meanwhile, Bitcoin (BTC) investment products recorded outflows totaling $52 million over the analyzed period. This brings the cumulative eight-week Bitcoin outflow to $254 million, which is approximately 1.2% of total assets under management (AUM). In addition, short bitcoin products recorded $1.1 million in churn, with a seven-week churn of 44% of AUM.
On the other hand, altcoins during this period showed “mixed fortunes”. Minor inflows were seen for Litecoin (LTC), XRP (XRP) and Solana (SOL), while Polygon (MATIC) experienced outflows. “Interestingly, collectively, altcoins have shown inflows since the beginning of the year (except for Tron), which is in stark contrast to Bitcoin and Ethereum,” said James Butterfill, author of the CoinShares report.
Interestingly, 87% of churn was concentrated within a single provider, indicating regional influence. Most of these outflows came from North America, while Switzerland saw a minor inflow of $9.2 million. On the other hand, Germany experienced an outflow of $9.4 million.
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