CoinShares, a European cryptocurrency investment firm, released its “Digital Asset Fund Flows Report” on May 15, revealing that digital asset investment products saw a continued streak of outflows. A total of $54 million exited the market, bringing the cumulative outflow to $200 million, which represents 0.6% of total assets under management (AuM) according to CoinShares.
The report highlights that Bitcoin funds witnessed outflows of $38 million, accounting for 80% of the total outflows over the past four weeks, which amounted to $160 million. When combining the outflows from short positions on Bitcoin, the total value reached $201 million, emphasizing the predominant focus on Bitcoin in recent investor activity.
Investor’s selectiveness in the crypto market
Additionally, multi-asset investments experienced outflows of $7 million in the past week. However, there was an interesting development as eight different altcoin assets received inflows, indicating that investors are becoming more adventurous and selective in their investment choices.
Among the altcoins, Cardano, Tron, and Sandbox attracted minor inflows of less than $1 million each. Binance was the only altcoin that witnessed outflows.
In a separate survey conducted by Bloomberg’s Markets Live Pulse, it was suggested that in the event of a theoretical debt default in the United States, Bitcoin could emerge as one of the top three assets alongside gold and United States Treasuries. This indicates that Bitcoin’s appeal as a “digital gold” may grow if investors doubt the ability of Washington to avoid long-term defaults.
Overall, the report highlights the continued outflows from digital asset investment products, particularly in Bitcoin, while also noting the increasing interest and selective investments in altcoins. The potential role of Bitcoin as a safe-haven asset in uncertain economic times is also acknowledged.
Source: https://www.cryptopolitan.com/investors-abandoning-crypto-find-out-why-200m-is-pouring-out-of-the-market/