The second week in a row saw the trajectory of crypto asset investment products take a dip, with the total outflows amounting to $206 million, as per the report by CoinShares. During this period, trading volumes for exchange-traded products (ETPs) declined slightly to $18 billion. Importantly, these figures represent lower parts of total Bitcoin volumes, which are currently at 28% compared to 55% one month ago. Data analysis shows that ETP/ETF investors’ interest is decreasing, which may happen due to foreseen high-interest rates from the Federal Reserve over the long term.
Zooming in on regional dynamics, the negative sentiment primarily emanated from US ETFs, bearing the brunt of $244 million in outflows. Interestingly, the outflows gravitated towards established ETFs, while newly introduced ones witnessed inflows, albeit at a notably subdued rate compared to previous weeks. In contrast, Canada and Switzerland observed inflows of $30 million and $8 million, respectively, while Germany encountered minor outflows amounting to $8 million.
Crypto Flows: Bitcoin Outflows, Ethereum’s Streak
Shifting the focus to individual cryptocurrencies, Bitcoin experienced outflows amounting to $192 million, yet there was a conspicuous absence of investors capitalizing on the opportunity to short, as evidenced by a mere $0.3 million in outflows from short-bitcoin positions. Meanwhile, Ethereum sustained its streak of outflows for the sixth consecutive week, tallying $34 million. On a brighter note, multi-asset investments witnessed a surge in sentiment, with inflows totaling $9 million for the preceding week. Additionally, Litecoin and Chainlink garnered inflows of $3.2 million and $1.7 million, respectively.
According to data obtained by CoinShares, there has been a weekly outflow of funds from blockchain equities for the 11th consecutive week, totaling $9 million. This consistent trend results from investor concerns about halving’s effects on mining firms, pointing to an environment of caution inside that market segment. Nevertheless, the crypto investment space is changing as it advances due to reasons like policy moves or macro-economic changes making this a fluid situation with different sentiments and investors’ preference shifts.
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