The slight cooling in the crypto market was balanced by strong inflows into Bitcoin.
The digital asset market experienced a slight cooldown with an outflow of approximately $11.2 million over the past week, according to the latest data from the digital asset company CoinShares. Despite this negative atmosphere, Bitcoin stood out with an inflow of $3.8 million.
CoinShares’ Digital Asset Fund Flows Weekly report showed a significant increase in trading volume despite limited activity in flows; reaching $2.8 billion for the week, indicating a 90% surge relative to the year’s start average.
Other cryptocurrencies saw outflows. Specifically, Polygon (MATIC) and Ethereum (ETH) witnessed declines of $8.6 million and $3.2 million, respectively. However, Solana (SOL) bucked the altcoin trend with its ninth consecutive week of inflows, seeing a total of $0.7 million in inflows.
Short positions on Bitcoin (BTC) experienced outflows for the 19th consecutive week, with a total outflow of $3.8 million. The total assets under management in short positions on Bitcoin have decreased by 48% since its peak this year.
The Effects of Legal Processes
This volatility in the digital asset market came alongside concerns and hopes related to regulations on digital assets. Last week, hopes for a spot exchange-traded fund (ETF) approval in the US became complicated due to the postponement of the decision for all spot ETF applications and Grayscale’s victory over the SEC.
However, despite the negative sentiment, the digital asset investment product sector continues to maintain a net inflow position since the beginning of the year, recording a total of $165 million in inflows.