- Global crypto investment products experienced $147 million outflows last week.
- Trading volumes increased 15% despite reduced investor sentiment
Global investment products focused on crypto, managed by firms such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, have witnessed a significant reversal after a remarkable three-week net inflow period, with $147 million exiting these funds last week. This development marks a sharp decline from nearly $2 billion in inflows over the preceding weeks, as reported by CoinShares.
James Butterfill, Head of Research at CoinShares, attributed the weaker sentiment among investors to “higher than expected economic data” released last week, which reduced expectations for substantial interest rate cuts. This shift in market conditions appears to have prompted a cautious approach among investors.
Meanwhile, notably, bitcoin-based funds led the outflows with $159 million, while short-bitcoin investment products saw a modest net inflow of $2.8 million. The negative flows were predominantly felt in the U.S., Germany, and Hong Kong, with losses amounting to $209 million, $8.3 million, and $7.3 million, respectively. However, Canadian and Swiss products provided some offset, recording net inflows of $43 million and $34.9 million.
Trading Volumes for Global Crypto Investment Products Increased
Despite these outflows, trading volumes for global crypto investment products increased by 15% to $10 billion over the week, according to Butterfill, highlighting a robust trading environment amid softer market activity. Bitcoin is currently trading at $63,595, reflecting a 2.6% gain over the past 24 hours. The leading cryptocurrency remains up 46.6% year-to-date, despite experiencing an 8.5% dip earlier last week.
Ethereum-based products also faced challenges, with net outflows of $28.9 million due to “lackluster” investor interest. In contrast, multi-asset investment products continued to attract interest, adding $29.4 million and marking the 16th consecutive week of positive flows, representing a growing preference for diversified investment strategies among investors.
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