Crypto Investors Hit the Exit Button: $6.4 Billion Leaves Digital Assets

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Digital Asset Outflows Hit $6.4B in Market Downturn
  • U.S. led digital asset outflows, contributing $1.16 billion, 93% of total losses.  
  • Bitcoin saw $5.4B in outflows over five weeks, marking significant market challenges.  
  • XRP recorded $1.8 million in inflows, bucking the trend amid broader crypto declines. 

Digital asset investment products have seen a downturn, with a total of $6.4 billion leaving the market during a tough period. This trend has continued for the fifth week in a row, bringing the total outflows for this period to $1.7 billion, which is the longest losing streak since 2015.

Despite the ongoing negative sentiment, inflows for the year are still positive at $912 million. However, these recurring outflows have caused total assets under management (AuM) to drop by $48 billion, showing just how volatile the market is.

Related: Massive Outflows Shake Digital Asset Investment Products 

Where Did Most of the Money Leave From?

The United States saw the biggest amount of money leaving, with $1.16 billion, or 93% of the total losses. 

Switzerland was also affected, reporting $528 million in outflows because a major early investor pulled out. On the other hand, Germany saw a smaller move, with only $8 million coming into the market during this time.

How Did Major Cryptocurrencies Perform?

Bitcoin was the most affected asset, with $978 million leaving last week alone. Over the past five weeks, Bitcoin’s outflows have reached $5.4 billion. Ethereum and Solana also saw losses, with $175 million and $2.2 million in outflows, respectively.

Interestingly, XRP was one of the few digital assets that saw money come in, adding $1.8 million to its total. Despite the generally downbeat market, XRP’s ability to attract capital shows a different trend compared to other major digital currencies. The Bitwise Bitcoin ETF recorded $23.04 million in net inflows, bringing its total to $2.03 billion, with $3.25 billion in assets under management.

Similarly, the VanEck Bitcoin ETF (HODL) saw $4.79 million in net inflows, raising its total inflows to $832.4 million and a total AuM of $1.19 billion.

What Happened to Binance’s Assets?

However, Binance saw its assets under management (AuM) almost disappear after a major investor pulled out. The exchange now holds just $15 million in AuM, a drop from where it was before.

Related: Bitcoin vs. Ethereum: Institutional Investors Diverge as Digital Asset Funds See Outflows

Meanwhile, blockchain stocks were also negatively affected, with $40 million leaving the market. Despite this overall downward trend, BlackRock’s iShares Bitcoin Trust posted $96.24 million in net outflows, though it remains the top-performing fund with $39.24 billion in total net inflows.

Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.

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