On May 2, the European cryptocurrency investment company CoinShares released the latest "Digital Asset Fund Flow Weekly Report", reporting that the digital asset market experienced bearish sentiment for the second consecutive week, with a total of $72 million in outflows. The bearish sentiment could be attributed to the possibility of further interest rate hikes by the Federal Reserve this week, the report noted.
According to the report, crypto market funds experienced outflows across all regions and providers, notably in Germany and Canada, where outflows reached $40 million and $14 million, respectively.
Short Bitcoin recorded the largest outflow of $46 million, and short Bitcoin also experienced an outflow of $7.8 million, the highest figure since December 2022. Despite recent outflows, short Bitcoin continued to lead inflows for the year, with net inf lows of $119 million. At the same time, ether. Product outflows were $19 million, the largest weekly outflow since the merger in September 2022.
On the positive side, a handful of altcoin funds experienced modest inflows, Solana, algorithm
and polygon, each received less than $1 million in capital flows. Blockchain stocks also experienced negative sentiment, resulting in outflows of $2.5 million last week, although year-to-date net outflows remained positive at $27 million.
CoinShares researcher James Butterfill wrote the report. He writes: “Volumes in the broader cryptocurrency market remain subdued (50% below annual average), while ETP [exchange-traded product] investment products traded $1.7 billion this week, above annual average 16% out "BTC prices are up 72% this year, outperforming the S&P 500's 9% gain, despite bitcoin experiencing wild price swings over the past week that resulted in the liquidation of $340 million worth of leveraged BTC futures contracts.
