CoinShares, a European cryptocurrency investment firm, disclosed on May 15 that digital asset investment products experienced a total of $54 million in outflows last week, marking another week of consecutive outflows.
The document released by the Digital Asset Fund agency revealed that the total outflows have reached $200 million, equivalent to 0.6% of the total assets under management (AuM).
It was gathered that Bitcoin (BTC) funds suffered outflows of $38 million, with the total BTC outflows over the past four weeks amounting to $160 million. This accounts for 80% of all outflows.
Moreover, when combined with outflows from short positions on Bitcoin, the total value of outflows linked to this asset alone reached $201 million, indicating that recent investor activity has been predominantly focused on Bitcoin.
Multi-asset investments also experienced $7 million in outflows in the past week. However, an interesting development emerged as inflows were observed across eight different altcoin assets.
This implies that investors are tacitly becoming more adventurous and selective in their investment choices.
Among the altcoins, funds associated with Cardano, Tron, and Sandbox saw minor inflows of less than $1 million each. Binancecoin (BNB) was the only altcoin to witness outflows.
Emerging Odds in Favour of Bitcoin According to CoinShares
Despite the massive outflows, a recent survey by Bloomberg’s Markets Live Pulse revealed that if a theoretical debt default were to occur in the U. S., Bitcoin could emerge as one of the top three assets, alongside gold and United States Treasurys.
This implies that if investors doubt Washington’s ability to avoid a default in the long run, the appetite for Bitcoin as a “digital gold” could resurface.
Recall that Bitcoin crossed the $28,000 mark following the collapse of crypto-friendly banks, Silvergate, SVB, and Signature. At the time of writing, BTC is trading at $27500 according to CoinMarketCap data.
It remains to be seen if the digital asset will profit from a potential United States debt default as projected.
More than any other time, investors’ interest will soon be tested on their selective investment choices.
