Cryptocurrency investment products had a total outflow of $62 million this week. This marks a total outflow of US$ 329 million for the 7th consecutive week.
Fund Outflows Continue in Cryptocurrencies
Smart contract platform Tron was the main focus, seeing a total output of US$51 million last week.
Investors are believed to be making profits and exiting short positions, rather than the recent exits representing a structural drop in sentiment towards Bitcoin.
Smart contract platform Tron was the primary focus last week, seeing $51 million exits representing 70% of total AuM. We believe this is a more worrisome situation rather than a single investment product provider raising equity capital.
Small outflows were seen in Bitcoin totaling $2.7 million, while Bitcoin shorted outs of $6.3 million were also seen.
While the absolute outflows for Bitcoin are smaller in short positions, the total outflow over the last 6 weeks represents 44% of the total AuM compared to just 0.9% for Bitcoin longs.
This indicates that investors are making profits and exiting short positions, rather than indicating a structural decline in sentiment towards the asset.
As the market continues to evolve, it will be crucial to monitor not only the flow of mutual funds, but also broader market indicators such as regulatory developments, institutional adoption and technological advances.
These factors can provide a more comprehensive understanding of market dynamics and the underlying sentiment towards digital assets.
*Not investment advice.
