Although minor inflows were recorded, it wasn't enough to turn the tide.
Investment offerings centered around cryptocurrencies continue to face persistent withdrawals, marking the ninth consecutive week of outflows amounting to $423 million.
According to the "Digital Asset Fund Flows Report" by the European crypto investment enterprise, CoinShares, last week alone saw an outflow of $5.1 million.
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The report painted a somewhat gloomy picture but hinted at a potential silver lining. As at the end of the week, the globe's colossal asset manager BlackRock made headlines by applying for a Bitcoin exchange-traded product (ETP) in the United States.
Although this news did stir some minor inflows, the magnitude wasn't substantial enough to counterbalance the previous outflows, hence the continuation of the outflow streak.
A closer look at the geographical dispersion of inflows shows the US and Germany taking the lead with contributions of $3.7 million and $2.4 million, respectively.
The report noted that the US remained the frontrunner in terms of aggregate inflows for the current year, standing at $147 million. Meanwhile, Canada wrestled with significant outflows amassing $277 million. CoinShares' James Butterfill added:
Despite improving regulatory conditions in Hong Kong, we have not seen any measurable inflows into ETPs year-to-date while total assets under management (AuM) remain low at $39M.
The previous week's downturn in altcoin prices spurred investors to augment their positions, which led to inflows summing up to $2.4 million. Altcoins like XRP, Cardano (ADA), and Polygon (MATIC) caught the lion's share of these inflows, with contributions of $1 million, $0.6 million, and $0.2 million, respectively.
Ether (ETH), however, bore the brunt of the most substantial outflows for the week, totaling $5 million. CoinShares further observed that Tron (TRX) and Avalanche (AVAX) also experienced withdrawals, each facing a $0.4 million outflow. In the same context, the report noted:
Blockchain equities witnessed their largest outflows since FTX, amassing $12.3M.
While the crypto investment landscape faces continued outflows, the industry awaits potentially transformative developments such as BlackRock's Bitcoin ETF, possibly ushering in a new era of mainstream acceptance for crypto investment products.
