Last week, crypto investment products at the largest asset managers such as Grayscale, 21Shares, Bitwise and ProShares saw an outflow of $53.5 million, completing a five-week period of consecutive declines. James Butterfill, research manager of CoinShares, Europe’s largest digital investment company, stated in his latest report that there was a decrease compared to the outflow of 59.3 million dollars seen in the previous week, but with outflows in eight of the last nine weeks, total outflows reached 455 million dollars.
Despite a good start to 2023, net inflows since the beginning of the year have decreased to 51 million dollars with the decrease in the exit series. In addition, Butterfill stated that the main reason for this negative environment is the USA and added that 77% of the outflows come from the USA. In addition to the debuts in the US, Germany, Canada and Sweden also witnessed significant regional debuts last week. Following the $9.6 million outflow in blockchain stocks in these countries last week, this was the sixth consecutive week of outflows. Contrary to these negative news, transaction volume managed to exceed 1 billion dollars, an increase of 42% from 754 million dollars in the previous week. Bitcoin, Solana, Cardano and XRP carry the majority of these volumes.
Bitcoin funds were ahead in outflows this week, even though the previous week saw the largest single-week inflow since March and short-term Bitcoin funds also saw an outflow of $3.8M. Bitcoin funds lost $45 million last week, accounting for 85% of the total outflow. Ether, which is considered the second largest cryptocurrency, could not escape the $ 4.8 million outflow despite the attractive investment fundamentals and high demand for staking returns pointed out by Butterfill. BNB and Polygon also experienced small outflows of $0.3 million. Unlike many cryptocurrencies in the market, Solana, Cardano and XRP funds experienced inflows of $0.7 million, $0.4 million and $0.1 million, respectively. These entries were considered signals of potential optimism for cryptocurrencies.