CoinShares, the European alternative asset manager, shares that digital asset investment products saw outflows of $168 million in their Aug. 29 report.
Since the United States regulatory crackdown on exchanges began in March 2023, this number is the largest outflow.
The report cites Bloomberg as the source. It shares that outflows by asset were highest for Bitcoin (BTC) at $149.4 million, followed by Ethereum (ETH) with $16.8 million.
Data states these outflows occur across most geographies, implying that the alleged negative sentiment is broad-based. That said, Germany, Canada, the United, and Switzerland accounted for the greatest outflows with $68 million, $61.2 million, $19.5 million, and $16.7 million, respectively.
Together, this puts August’s outflows at $278 million. The report defines it as an exceptionally low trading volume market. Investment products are also highlighted, with their trading estimated at $1.3 billion this week, 16% lower than the yearly average.
Although several reasons may be attributed to the report numbers, including the ongoing crypto winter, CoinShares suggests that this week it can be linked to the spot-based ETFs for Bitcoin taking longer to be accepted in the United States than expected, with another delay recently being announced by the SEC.
Bitcoin continues to add to losses
Unfortunately, the markets continue to look bleak for Bitcoin. In an Aug. 20 report from Bloomberg, analysis shared that Bitcoin has only continued to add losses in what was the worst week since last November, attributed to lower demand for “riskier investments.” As part of the report, the asset was said to fall 1% toward $26,000 in a two-month low, following a loss of 10% in the previous seven days.
Although the data showed it was Bitcoin that was facing the biggest losses, it is worth noting that as the largest cryptocurrency by market cap, the public’s market sentiment toward it often impacts the rest of the crypto industry.
Source: https://crypto.news/coinshares-reports-largest-crypto-outflows-since-us-crackdown/