Strong Dollar and Regulations Dampening Institutional Confidence: CoinShares

According to CoinShares, a digital asset manager, institutional investors are currently less optimistic about cryptocurrency due to a strong dollar and ongoing regulatory concerns in the United States.

According to CoinShares’ latest Digital Asset Fund Flows Weekly Report, digital assets saw outflows of nearly $60 million last week, marking the fourth week of outflows in a row.

“Digital asset investment products saw outflows totaling $59 million last week, marking the fourth consecutive week of outflows; this run of outflows now totals $294 million and accounts for 0.9% of total assets under management (AuM).”

According to CoinShares,

“Inflows were also seen in short investment products, indicating that sentiment toward the asset class remains negative.” We believe the most likely reasons for this are ongoing concerns about asset class regulation and recent dollar strength. Trading volumes also fell significantly, falling 73% from the previous week to just US$754 million.”

Bitcoin (BTC) took the lion’s share of the outflows, accounting for $69 million. CoinShares has also noticed a significant inflow into short-BTC products.

“… short bitcoin experienced its largest single week of inflows since March 2023, totaling US$15 million.” This is interesting because the inflows in March also occurred during a period of increased regulatory uncertainty.”

Outflows from Ethereum (ETH), Solana (SOL), and multi-asset investment vehicles totaled $4.8 million, $1.1 million, and $0.8 million, respectively. Inflows into XRP products totaled $0.4 million.

Read Also: Altcoins Set to Rise from 'Depression Phase,' Says Crypto Analyst Michaël van de Poppe

Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.

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