Digital Asset Funds Face Fourth Consecutive Week of Outflows
Digital asset investment funds experienced $173 million in net outflows last week, marking the fourth consecutive week of outflows as major cryptocurrencies saw price declines.
For the fourth week in a row, digital asset investment funds have recorded outflows, totaling $173 million in the past week. This trend coincides with a general downturn in the prices of leading cryptocurrencies, including Bitcoin and Ether, which saw significant declines.
Despite the overall negative sentiment, certain digital assets demonstrated resilience. XRP and Solana-based investment products managed to attract inflows, bucking the broader market trend. This indicates a divergence in investor sentiment towards specific altcoins even as the broader market contracts.
The outflows primarily affected Bitcoin and Ether, the two largest cryptocurrencies by market capitalization. Investors appear to be reducing their exposure to these established digital assets, contributing to the sustained period of net selling pressure observed in the crypto fund market.
This ongoing outflow pattern suggests a cautious approach from institutional and retail investors regarding the current market conditions. The consistent withdrawal of capital from digital asset funds highlights investor hesitancy amidst price volatility and broader macroeconomic factors influencing the digital asset space.
Originally reported by CoinTelegraph.