The digital asset market has experienced a minor cooling-off phase, with outflows totaling roughly US$11.2 million over the week, according to recent data by digital asset firm CoinShares. Despite this streak of negative sentiment, Bitcoin emerged as a beacon with inflows totaling US$3.8 million.

CoinShares’ Digital Asset Fund Flows Weekly report also displayed a notable increase in trading volumes despite the limited activity in terms of flows, with volumes rising to US$2.8 billion for the week, marking a 90% increase from the year-to-date average.

Altcoins, however, experienced outflows, with Polygon and Ethereum seeing a decrease of US$8.6 million and US$3.2 million, respectively. Solana, bucking the altcoin trend, witnessed inflows for the ninth consecutive week, totaling US$0.7 million.

Short Bitcoin positions, on the other hand, saw consistent outflows for the 19th consecutive week, totaling US$3.8 million. The total assets under management for short Bitcoin have fallen 48% from this year’s peak.

The fluctuating sentiment in the digital asset market comes amid concerns and hopes about regulations on digital assets. Last week, hopes for spot exchange-traded fund (ETF) approval in the United States were complicated following a delay in the decision for all spot ETF applications and Grayscale’s win over the SEC.

Despite the lingering negative sentiment, the digital asset investment products sector remains in a net inflow position for the year-to-date, recording a total of US$165 million.

The post $2.8 billion traded in Digital Asset ETPs this week as outflows slow appeared first on CryptoSlate.

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Filed under: Bitcoin - @ September 4, 2023 1:15 pm