• CoinShares report revealed a negative sentiment in digital asset investment products, recording an outflow of $17 million.
• The outflow is likely due to regulatory uncertainty for the asset class, with the US SEC continuing to target crypto entities in the country.
• Investment product volumes were low at $844 million for the week, while Bitcoin market volumes averaged $57 billion.
Digital Asset Outflows Recorded Amid Regulatory Concerns
CoinShares report has revealed that a negative sentiment has been recorded in digital asset investment products, leading to an outflow of $17 million. This comes amid growing regulatory concerns from the US Securities and Exchange Commission (SEC), which continues to target crypto entities in the country.
Investment Product Volumes Low
The report also highlighted that investment product volumes for the week were low at $844 million, while Bitcoin market volumes averaged only around $57 billion. Short-bitcoin saw inflows for a third week totaling $1.8 million during this period, however it failed to translate substantially as short-bitcoin assets under management (AUM) rose only by 4.2% YTD. In contrast, long-bitcoin AUM was seen rising by 36% YTD indicating that short positions have not benefited some investors as expected.
Institutional Investors Feeling Pressure
The US SEC’s ongoing crackdown on digital assets has resulted in institutional investors feeling pressure as well due to regulatory uncertainty surrounding them. The outflows have been relatively minor this week compared to figures witnessed in past few weeks with majority of these outflows being from Bitcoin totaling around $20 million according to the fund manager’s report.
Bitcoin Market Sentiment Low
The negative sentiment within Bitcoin markets appears to remain low despite several positive developments including Tesla’s recent purchase of $1.5 billion worth of BTC earlier this month and PayPal allowing users to buy, sell and hold cryptocurrencies on its platform since 2020 end.. Additionally, recent reports suggest more institutional players are moving into bitcoin markets with confidence such as hedge funds investing nearly 1 percent of their capital into BTC and other cryptocurrencies .
Conclusion
Overall, CoinShares’ latest report reveals that Bitcoin investments continue to suffer from investor concerns over regulatory uncertainty in spite of various positive developments within its ecosystem recently