Continued crypto fund exodus highlights investor wariness over economic factors.
The prolonged departure from cryptocurrency investment products, amounting to $417 million over eight weeks, signals an ongoing trend of investor caution due to prevailing economic considerations.
The just-published CoinShares' weekly report for June 12th reveals that the last week alone saw a significant departure of $88 million.
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It is believed that investor resistance is driven by looming economic factors. According to CoinShares analysts, the relentless rise of interest rates forced investors to adopt a wait-and-see approach.
On top of that, the company claims that the landscape of monetary policy, characterized by uncertainty and consistent hikes, is driving an overall sense of caution in the market.
Among the cryptocurrencies, Bitcoin (BTC) saw notable withdrawals. Over the analysis period, investment products related to Bitcoin recorded a departure of $52 million.
With these recent outflows, Bitcoin's eight-week cumulative outflows stand at $254 million, or approximately 1.2% of the total assets under management (AUM). Further adding to the negative trend, short-Bitcoin products recorded outflows of $1.1 million, with the past seven weeks' outflows accounting for almost half of its total AUM.
Ethereum (ETH) saw its own notable withdrawals, accounting for $36 million of the past week's outflows. This marks the most significant amount pulled from Ethereum investment products since the monumental Ethereum Merge.
However, altcoins presented a mixed picture during this period. Cryptocurrencies like Litecoin (LTC), XRP, and Solana (SOL) saw minor inflows, whereas Polygon (MATIC) reported outflows.
According to James Butterfill, CoinShares’ report author, this pattern contrasts with Bitcoin and Ethereum, as altcoins have seen inflows on a yearly basis.
Digging deeper into the geographical origins of these outflows, it becomes apparent that there is a regional bias at play. A staggering 87% of the outflows stemmed from one provider, revealing a geographical concentration. The majority of these outflows were traced back to North America.
On top of that, following SEC's lawsuit spree, the median trading volumes on leading decentralized exchanges (DEX) recorded an increase of around 444%.
The current trend of outflows underscores the caution investors exhibit, influenced by monetary policy changes and regulatory uncertainties.
