Crypto Investment Products Experience $206,000,000 Outflows
Crypto investment products have witnessed outflows for the second week in a row. According to the data, a total of $206 million in capital exited the market.
CoinShares reported that this trend coincides with a slight dip in trading volumes for exchange-traded products (ETPs), which recorded $18 billion in transactions. The data suggests that investor appetite for digital asset ETPs and ETFs is waning.
Key points:
- Crypto investment products witnessed outflows of $206 million in the second consecutive week.
- Trading volumes in ETPs dipped slightly to $18 billion, representing a lower percentage of total bitcoin volumes compared to a month ago.
- U.S. ETFs accounted for the majority of outflows, with $244 million in capital exiting the market.
- Bitcoin and Ethereum saw significant outflows of $192 million and $34 million, respectively.
- Blockchain equities witnessed their 11th consecutive week of outflows, totaling $9 million.
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U.S. ETFs, which saw outflows of $244 million, primarily drove the negative sentiment. Interestingly, incumbent ETFs concentrated the outflows, while newly issued ETFs continued to attract inflows. Canada and Switzerland experienced inflows of $30 million and $8 million, respectively. However, Germany saw minor outflows of $8 million.
Bitcoin accounted for majority of crypto outflows
Bitcoin accounted for the majority of the outflows, with $192 million in capital leaving the asset. However, few investors saw this as an opportunity to take short positions. This is evidenced by the $0.3 million outflows from short-bitcoin products. Ethereum also experienced significant outflows of $34 million. This marks ETH’s sixth consecutive outflow week.
On a more positive note, multi-asset investment products saw improved sentiment, attracting inflows of $9 million last week. Additionally, Litecoin and Chainlink witnessed inflows of $3.2 million and $1.7 million, respectively.
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Blockchain equities, which represent companies involved in blockchain technology development and adoption, continued to face challenges. The sector saw its 11th consecutive week of outflows, totaling $9 million.
The consecutive weeks of outflows from digital asset investment products highlight the cautious sentiment among investors in the current market environment.
