Digital Asset Investment Products Suffer Largest Weekly Net Outflow Since Late 2022, Blockchain Stocks Continue to Attract Investors

02/20/2023 10:49 • NFT Newsflash • 147 views

It is reported that according to the CoinShares report, the net outflow of digital asset investment products last week was 31.7 million US dollars, which is the largest weekly net outflow since late 2022. Among them, the net outflow of Bitcoin investment products was 24.8 million dollars, the net outflow of Ethereum investment products was 7.2 million dollars, and the net inflow of investment products short of Bitcoin was 3.7 million dollars. Blockchain-related stocks totaled US $9.6 million last week and have achieved net inflows for six consecutive weeks.

CoinShares: last week’s net outflow of digital asset investment products was 31.7 million US dollars

Interpret the above information:

The latest CoinShares report indicates that digital asset investment products witnessed a massive net outflow of 31.7 million US dollars last week, representing the largest weekly net outflow since late 2022. This report is a clear indication that the prevailing bearish market sentiment and the ongoing regulatory clampdown on crypto assets are exerting significant downward pressure on investors’ sentiments.

The report further highlights that a whopping 24.8 million dollars net outflow from Bitcoin investment products contributed significantly to the total net outflow. Bitcoin has been the most popular digital asset investment vehicle, and this sharp reduction in investment shows that investors are uncertain about the future prospects of the currency. At the same time, Ethereum investment products witnessed a net outflow of 7.2 million dollars, indicating a lack of buying interest in the currency.

However, not all investment products saw net outflows, as short Bitcoin investment products experienced a net inflow of 3.7 million US dollars. This could be attributed to investors’ cautious outlook on Bitcoin, which led them to hedge their positions with short-bitcoin investment products.

Investors’ response towards blockchain-related stocks has been quite positive, with net inflows reaching 9.6 million US dollars for the sixth consecutive week. The report suggests that with the current volatility in the crypto markets, investors view blockchain-related stocks as a relatively safer alternative. The positive sentiment towards blockchain-related stocks can be attributed to the long-term potential of blockchain technology in several sectors beyond cryptocurrencies, such as finance, supply chains, and voting systems.

In conclusion, the CoinShares report indicates that the digital asset market is under stress due to an uncertain regulatory environment and ongoing bearish sentiment. The massive net outflows from Bitcoin and Ethereum investment products suggest that investors are cautious of the digital asset markets’ short-term potential. However, blockchain-related stocks remain a popular option among investors looking for exposure to the blockchain technology market, indicating a long-term positive outlook for the blockchain sector.

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