In a somewhat volatile week for digital asset investment products, a sixth unbroken week of outflows was experienced. Major players in the cryptocurrency space, Bitcoin (BTC) and Ethereum (ETH), contributed significantly to this trend. A recent CoinShares market report revealed $9 million outflows from these digital asset investments, with BTC responsible for $6 million of this sum, marking its third week of consistent outflows. ETH came up close behind with $2.2 million, suffering its sixth week of uninterrupted outflows.
The rapidly changing crypto landscape, dubbed the crypto winter, also saw markedly low volumes. A mere $820 million exchanges this past week is a notable dip from the annual mean volume, a hefty $1.3 billion. Elsewhere, the Short-bitcoin experienced a notable downfall in exits, falling from a monthly zenith of $15 million to only $2.8 million, as it saw 78% of its assets under management (AUM) withdrawn in the previous 22 weeks. Multi-asset products were not immune to the stumble, facing losses this week and a total of $32 million in outflows throughout this trading year.
Interestingly, amidst the downturn faced by BTC and ETH, some altcoins like Ripple(XRP) and Solana (SOL) recorded inflows. Investors showed confidence in these altcoins resulting in $0.66 million inflows in Ripple and $0.31 million in Solana.
Throughout the twists and turns, bulls continue to show determination. Although the price of Bitcoin currently fluctuates around significantly lower than the yearly high of $31,000, industry influencers remain committed to the potential upside of the crypto market.
In contrast to the United States, Europe seemed to respond positively to the crypto trends. This, in part, is due to clear regulations following the passing of the Market in Crypto Assets (MiCA) regulation in Europe. This has sparked a difference in recent investment narratives across different continents, attracting more investments in Europe as compared to the withdrawals in the United States.
This divergence in investment behaviour has led to a potential shift of the web3 talent away from the U.S. to regions with more lenient industry standards. Even platforms likeCoinbase have set their sights on regions such as the UK, Europe, Brazil, and Hong Kong as possible near-term priorities, whilst expressing criticism towards the regulatory standards in the United States.
Source: Cryptonews
