According to the latest report from CoinShares, digital asset investment products saw a significant outflow last week, with investors withdrawing over $58.4 billion from the market.
The two largest cryptocurrencies suffered the biggest losses, with Bitcoin seeing outflows of $63 billion and Ethereum $580,000.
Interestingly, this change led to a sharp increase in investments in altcoins, with inflows into diversified asset products. This indicates that despite wider pessimism surrounding mainstream markets, investors are still finding opportunities in the altcoin market.
Despite these outflows, Bitcoin short positions did not increase significantly, showing that investor sentiment is somewhat complex. While bearish prospects have affected both Bitcoin and Ethereum, the impact on ETH is somewhat less.
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Altcoins are becoming increasingly popular
In stark contrast to the outflows from the two largest cryptocurrencies, inflows into diversified asset products remained strong, reaching $980,000. This change shows that investors view the current weakness in the altcoin market as an excellent buying opportunity.
These sentiments are also supported by inflows into specific tokens like Solana (SOL), Litecoin (LTC), and Polygon (MATIC), receiving $27,000, $13,000, and $10,000 respectively.
Global trends
Global trends also reflect this change. The US led with outflows of $47.5 billion, followed closely by Canada with $10.9 billion. Germany and Hong Kong also saw outflows of $240,000 and $190,000 respectively.
However, not all regions followed this trend. For example, Switzerland and Brazil saw inflows of $390,000 and $485,000 respectively.