Investment into digital asset funds continued to decline for the fourth consecutive week, with a total outflow of $54 million. Bitcoin was the main culprit in the decline, with $38 million of the total outflow. The short-bitcoin outflows denote that investor activity has not been seen in asset, but rather in its derivatives. Ethereum, the second largest cryptocurrency, saw a smaller but still considerable outflow of $6 million, while Binance, the leading altcoin, saw outflows of $2.8 million.

The trend of digital asset investment shifted elsewhere, however, as investors became more adventurous. Cardano, Tron and Sandbox saw inflows totaling $4.4 million, $3.4 million, and $2.2 million respectively. The Nasdaq and S&P 500, traditional market indices, were also noted to have seen a decrease for the week and are being compared against blockchain technology as an investment vehicle.

CoinShares added that Europe was the main contributor of outflows from bitcoin, whilst the highest volume of outflows in the United States primarily originated from investors selling off their short positions. This denotes that investors are becoming increasingly interested in altcoins and traditional markets, while preference towards investing in bitcoin and its derivatives is decreasing.

The continuing trend of outflows from digital asset investment funds provides evidence that investors are becoming increasingly digitally-savvy, whilst also seeking to diversify their investments. Investors are abandoning bitcoin, the largest cryptocurrency by market capitalization, as they shift their focus to alternative blockchain based assets, as well as to traditional investment vehicles in the face of market uncertainty. Both Europe and the United States have seen sizeable contrasts when comparing investor preference between the large frontrunner, bitcoin, and the smaller altcoin projects, Cardano, Tron and Sandbox.



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