Digital asset investment firm CoinShares indicates investors moved their funds out of cryptocurrency exchange-traded products last week worth $508 million because of ongoing market fears.
ETPs pushed money out of the crypto markets two weeks in a row after taking $415 million away last week. Following the presidential inauguration market specialists say traders sold crypto assets because of doubts about U.S. trade policy combined with worries about lingering inflation and monetary decisions.
Bitcoin ETPs lost a significant $571 million during the week of declining markets. The dominant market position of Bitcoin continues to strain investors who decrease their investment in the asset. Altcoin investment products see stable investment when compared to the strong sell-off of Bitcoin ETPs.
U.S. Leads Crypto ETP Outflows
The EPT instruments for XRP received investors who put $38 million into them last week while keeping total XRP investments at $819 million since November 2024. Investors think positively about XRP because they expect the U.S. Securities and Exchange Commission to end its legal battle with Ripple and let them create a physical XRP investment fund.
Solana saw $8.9 million invest along with $3.7 million going into Ethereum ETPs while Sui received $1.5 million. Leading asset management companies experienced individual market downfall effects. The biggest lost quantity came from Grayscale Investments and Fidelity Digital Assets who each had $170 million and $166 million disappear from their investment products.
During this week iShares ETFs from BlackRock suffered a rare investor withdrawal of $22 million. Despite market falls ProShares ETFs emerged as one of few major U.S crypto investment products to register positive results by attracting $38 million in cash.
The United States accounted for the main movement in crypto ETP trading with its $560 million outflows during that period. European investors stayed invested in digital assets without showing any decline in their sentiments. Both Switzerland and Germany tracked most European investment stream when buying $30.5 million and $15.8 million worth of crypto ETPs.
Digital asset investors across Europe keep buying crypto despite U.S. clients pulling back their funds because of economic problems. Crypto ETP prices jump and altcoins draw new investment money because traders see potential upsides based on what manipulation rules may happen and what the coins might deliver.
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