Investor sentiment plummets based on CoinShares reports.
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CoinShares, a European cryptocurrency investment management firm, announced in its weekly report released on the 2nd that cryptocurrency exchange-traded products (ETPs) saw a net outflow of $1.7 billion (KRW 2.46126 trillion) last week. This brings the cumulative net outflow over the past two weeks to $3.43 billion (KRW 4.965954 trillion).
CoinShares explained that this outflow has also caused its annual cumulative fund flow to turn negative, with approximately $1 billion (KRW 1.4478 trillion) having flowed out of cryptocurrency investment products so far this year.
Bitcoin-centric outflows continue
By asset, Bitcoin (BTC) investment products led the outflow.
According to the report, there was a net outflow of $1.32 billion (KRW 1.911 trillion) from Bitcoin investment products alone last week, bringing the cumulative annual outflow from Bitcoin-related products to $733 million (KRW 1.0569 trillion).
Ethereum (ETH) investment products also recorded a net outflow of approximately $380 million (KRW 550.164 billion), with accumulated losses since the beginning of the year totaling $383 million (KRW 554.584 billion).
Additionally, $31.7 million and $43.7 million in funds were withdrawn from Solana (SOL) and XRP (XRP) investment products, respectively, spreading selling pressure across altcoins.
On the other hand, short Bitcoin products betting on a decline saw a net inflow of $14.5 million, reflecting negative investor sentiment across the market.
By issuer, BlackRock's largest outflow
By issuer, BlackRock's iShares ETF recorded the largest outflow.
iShares ETFs alone saw a net outflow of $1.2 billion, while Grayscale Investments and Fidelity also saw outflows of $300 million and $197 million, respectively.
Meanwhile, ProFunds Group and Volatility Shares recorded net inflows of $139 million and $61 million, respectively, showing some funds moving into defensive products.
CoinShares: "Hawky Environment and Geopolitical Risks"
James Butterfill, head of research at CoinShares, said of the outflow:
"A combination of a more hawkish Federal Reserve personnel stance, periodic whale selling, and increased geopolitical volatility have played a role," he explained.
He added, "This has resulted in the total assets under management (AUM) of cryptocurrency funds falling to $165.8 billion (approximately 220 trillion won), with approximately $73 billion (approximately 97 trillion won) having evaporated since October last year."
Market sentiment remains at 'extreme fear'
Market sentiment has not improved since the report was released.
The Cryptocurrency Fear and Greed Index currently sits at 14, in the "extreme fear" zone.
According to CoinGecko, since the report's timeframe, the Bitcoin (BTC) price has been trading at around $77,610, down about 1.7% on the day.
Reporter Jeong Ha-yeon yomwork8824@blockstreet.co.kr
