Serious outflow of capital from investment Bitcoin and Ethereum products

Digital asset investment products saw a significant outflow last week, with investors withdrawing over $584 million from the market, according to the latest CoinShares report. 

The two biggest cryptocurrencies suffered the biggest losses, as at Bitcoin outflows equaled $630 million, and at Ethereum – $58 million. 

Interestingly, this change led to a sharp increase in investment in altcoins , with multi-asset products seeing inflows. This suggests that investors are spotting opportunities in the altcoin market despite the broader pessimism surrounding the mainstream cryptocurrencies .

Despite these outflows, there was no significant increase in short positions against BTC, indicating somewhat mixed investor sentiment. While the bearish outlook affected both Bitcoin and Ethereum, the impact on ETH was somewhat less.

Altcoins are gaining popularity

In contrast to outflows in the two largest cryptocurrencies, multi-asset products saw strong inflows of $98 million. This change indicates that investors are viewing the current weakness in the altcoin market as an excellent buying opportunity.

These sentiments are also supported by the inflow of funds into specific tokens such as Solana ( SOL ), Litecoin ( LTC ) and Polygon ( MATIC ), who received $2.7 million, $1.3 million, and $1 million, respectively.

Global trends

Global trends also reflect this change. The United States leads in outflows with $475 million, followed by Canada with $109 million. Germany and Hong Kong also saw outflows of $24 million and $19 million respectively.

However, not all regions follow this trend. Switzerland and Brazil, for example, recorded inflows of $39 million and $48.5 million, respectively.