On May 15, European cryptocurrency investment firm CoinShares published its latest “Digital Asset Fund Flows Report,” unveiling that digital asset investment products experienced another consecutive week of outflows, with a total of $54 million exiting the market. This caused the total outflow to elevate to $200 million and represented 0.6% of total assets under management (AuM) within the cryptocurrency ecosystem.
The report’s data indicates that Bitcoin (BTC) funds witnessed outflows of $38 million during this period. The total outflows from BTC over the past four weeks have been amassing to $160 million, accounting for 80% of all outflows. Furthermore, considering the outflows from short positions on Bitcoin, the total value of outflows related to this asset alone reached a staggering $201 million. These numbers vividly illustrate that recent investor activity has been predominantly concentrated on Bitcoin.
On the contrary side of the discussion, the same report also pointed out that multi-asset investments experienced outflows of $7 million in the past week. Interestingly, inflows were observed across eight different altcoin assets, which infers that investors are becoming “more adventurous and selective” in their investment choices.
Among the altcoins, funds tied to Cardano (ADA), Tron (TRX), and Sandbox (SAND) managed to attract minor inflows of less than $1 million each. However, not all altcoins benefited as Binance (BNB) was the only altcoin that witnessed outflows during this period.
In relation to the future implications of these developments, a recent survey conducted by Bloomberg‘s Markets Live Pulse indicated that, in the hypothetical scenario of a debt default in the United States, Bitcoin could emerge as one of the top three assets alongside gold and United States Treasurys. This outcome suggests that the appetite for Bitcoin as a “digital gold” could expand if investors doubt Washington’s capacity to avoid default in the long run.
In conclusion, while the cryptocurrency market is currently experiencing considerable volatility, investors’ behaviors reveal an ongoing shift from the dominant crypto, Bitcoin, towards alternative coins. This behavior of investors broadening their horizons, exploring altcoin investments, and reducing their reliance on Bitcoin indicates a potentially changing market dynamic in the long term. However, Bitcoin’s volatility and the constant outflows might signal the necessity for cautious strides within these rapidly changing markets.
Source: Cointelegraph
