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Digital asset investment products logged modest outflows of $17M last week, marking the fourth straight week of a capital flight in the wake of investor concerns over regulatory uncertainty for the space, according to a Monday report by CoinShares.
Bitcoin (BTC-USD) funds, too, saw its saw outflows of $20M for the fourth consecutive week ended March 3, the report said, and short-bitcoin funds experienced inflows for a third week totaling $1.8M.
The negative sentiment around crypto last week, with bitcoin (BTC-USD) dipping 4.8%, was also centered on crypto-friendly bank Silvergate Capital (SI) revealing doubts about its viability, as well as ongoing concerns over the Federal Reserve’s path for interest rates.
During the week, bitcoin (BTC-USD) market volumes averaged $57B, trailing the usual average by 15%, CoinShares noted.
Flows among altcoins, meantime, were mixed, as ethereum (ETH-USD) and solana (SOL-USD) saw inflows of $700K and $340K, respectively, while binance (BNB-USD) and cosmos (ATOM-USD) saw outflows of $380K and $210K, respectively.
Overall, crypto-market investors are getting increasingly wary of deploying capital in the space as the Silvergate (SI) turmoil unfolds. Earlier, SI got downgraded to Underperform at Wedbush after the company on Friday said it’s discontinuing its payments network.
“I would be surprised to see if the bank is open in a month with recent developments,” Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, wrote in a note. “A collapse of Silvergate could have ramifications for digital asset platforms who have used them, but also for how other banking partners decide to integrate crypto firms.”
Take a look at the latest outlooks on the crypto market.
