Digital asset investment products recorded their most significant withdrawal in months last week. Coin share’ The latest weekly reports have been revealed.
Coinshares reported that the sale marked the third largest spill of the year and the largest since March. The company also strengthened its trading activities last week, generating $38 billion in volume, nearly 50% above the annual average.
James Butterfill, research director at Coinshares, explained that the withdrawal early in the week reflected deep concerns about the Fed’s tightening pass. “We had a $2 billion spill over the first few days,” he noted, linking the movement to the horrors of further rate hiking.
However, market positioning shifted into the second half of the week after Jerome Powell’s remarks at the Jackson Hole Symposium were interpreted as softer than expected and caused partial rebounds. The $594 million inflow on Thursday and Friday reduced weekly losses.
Bitcoin and Ethereum dominate the withdrawal
Bitcoin is on the brunt of sales, with $1 billion leaving related products. Ethereum led to a $440 million outflow, but mid-week profits eased the decline.
Despite the set-off, the monthly numbers highlight Ethereum’s stronger positioning. The assets collected $2.5 billion inflows in August compared to a $1 billion net outflow of Bitcoin.
Ethereum inflows since the start of the year account for 26% of managed assets, while Bitcoin is behind 11%.
Beyond the two majors, investors’ appetites are divided into other major altcoins.
XRP has raised $25 million in new capital as the U.S. Securities and Exchange Commission (SEC) officially shut down its lawsuit against Ripple.
In contrast, SUI and Ton lost $12.9 million and $1.5 million respectively, highlighting fragmented investor sentiment.
Meanwhile, geographical flows also revealed last week that investors’ behavior could be vented.
US-based funds like BlackRock’s Islands have driven most outflows to $1.3 billion, while Sweden and Switzerland have donated $135.5 million and $11.8 million.
In comparison, Germany, Canada and Hong Kong registered modest inflows of $18.4 million, $3.7 million and $3.5 million, respectively, providing partial offsets.
