SEO news: Digital Asset Products Experience Outflows Amid US Recession Fears
$10B Wiped Off of ETPs After Friday’s Market Close
After Friday's market close, a significant correction in the digital asset market resulted in a $10 billion decline in total ETP Assets under Management (AuM). The majority of outflows were concentrated in the US, amounting to $531 million. In comparison, Germany and Hong Kong saw outflows of $12 million and $27 million, respectively. On the contrary, Canada and Switzerland recorded inflows of $17 million and $28 million, respectively, taking advantage of the price weaknesses.
bitcoin experienced substantial outflows totaling $400 million, marking a reversal from five consecutive weeks of inflows. Additionally, short-bitcoin products observed inflows for the first time since June, reaching $1.8 million. ethereum also saw outflows of $146 million, contributing to net outflows of $430 million since the launch of ETFs in the US. While new US ETFs saw inflows of $430 million, the established Grayscale trust experienced outflows of $603 million, balancing the scales.
Blockchain equities witnessed outflows as well, with an additional $18 million exiting the market. This trend aligns with the broader outflow pattern from tech-related ETFs across different markets. The digital asset market continues to navigate through challenging times amidst recession fears and geopolitical uncertainties.
bitcoin Lost 15% Last Week
bitcoin concluded the week at around $58,150 after a 14.8% decline from the previous week. The market volatility saw BTC briefly dropping below $50,000 before recovering to approximately $52,000. ETFs related to bitcoin experienced mild outflows of around $80 million, intensifying during Friday's sell-off. This reverse in momentum follows a period of strong net inflows in July, with bitcoin ETFs accumulating $17.5 billion in net inflows since inception.
Meanwhile, ethereum Spot ETFs faced significant outflows from the Grayscale ethereum ETF, resulting in a net outflow of approximately $500 million. The cautious market sentiment is reflected in slower inflows and higher outflows compared to the launch of BTC Spot ETFs. Analysts attribute the negative market trajectory to various macroeconomic factors influencing investor decisions.
The recent decision by the Bank of Japan (BOJ) to raise interest rates after 17 years due to concerns over the Yen's purchasing power decline against the US Dollar has sparked unease in risk-on asset markets, leading to widespread sell-offs. Additionally, escalating tensions in the Middle East, particularly involving Israel and neighboring nations, have added to market unease. Concerns about further escalation have prompted precautionary measures among affected countries, amplifying the market volatility.
