NEW YORK, May 7, 2024 - Crypto investment products have experienced consistent capital outflows for the past four weeks, according to the latest data from CoinShares, a European alternative asset management firm. The May 7 edition of CoinShares' fund report, covering the week ending May 5, highlights an overall outflow of $251 million from US-based Spot Bitcoin ETFs and other digital asset investment products.

This four-week trend of outflows appears to be driven by declining demand among market participants and a recent correction in Bitcoin's price, leading to negative sentiment in the market. Despite this, the report notes a glimmer of positivity in the form of inflows into altcoin investment funds, particularly those focused on Ethereum (ETH), Avalanche (AVAX), Cardano (ADA), Solana (SOL), Polkadot (DOT), and Litecoin (LTC).

A notable development was the launch of spot-based ETFs in Hong Kong, which registered $307 million in inflows. However, these inflows were not enough to counterbalance the significant outflows from US-based crypto investment products.

Altcoin-based funds showed resilience, with Ethereum leading the pack, attracting $30 million in inflows. While other multi-asset funds, as well as those focused on Avalanche, Cardano, Polkadot, Solana, Polygon, and Litecoin, also recorded smaller but meaningful inflows, indicating a potential shift in trader interest towards altcoins.

Though Bitcoin has been the primary focus for institutional traders over the past month, the continued positive inflows into altcoin funds could signal a break in this trend if the momentum persists.