Last week saw a significant outflow of funds from cryptocurrency investment products. Investors decided to move away from risky assets amid inflation concerns and geopolitical tensions between Iran and the US. According to a CoinShares report, digital asset exchange-traded products (ETPs) suffered a net loss of $1.07 billion, ending a six-week growth trend. This is reported by Cointelegraph.com .
Bitcoin (BTC) investment products accounted for the bulk of the outflows with $982 million. Ether (ETH) funds lost $249 million, the largest decline since January. Nevertheless, altcoins like XRP and Solana (SOL) bucked the general market trend, attracting $67.5 million and $55.1 million in investments, respectively.
The outflows were primarily concentrated in the US market, where investors withdrew $1.14 billion. Meanwhile, European markets such as Switzerland, Germany, and the Netherlands saw small inflows. This occurred concurrently with a decline in the S&P 500 index and rising oil prices due to the situation in the Strait of Hormuz.
Analysts believe that the passage of the CLARITY Act through the US Senate Banking Committee has boosted confidence in certain altcoins. This bill aims to create a clear legal framework for regulating digital assets. Industry representatives hope this step will reduce regulatory uncertainty in the US and provide a stable environment for crypto companies.
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