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Crypto products experienced their second week of outflows, with a total of $584 million leaving the market last week and a total of $1.2 billion. According to asset management firm CoinShares, this is a likely reaction to the “pessimism amongst investors for the prospect interest rate cuts by the FED this year.”
Bitcoin (BTC) was the primary target of the outflow, with $630 million withdrawn last week. Despite the negative sentiment, investors have not increased short positions in BTC, which saw outflows of $1.2 million.
On the altcoins side, Ethereum (ETH) also faced a downturn, with outflows of $58 million. However, certain altcoins like Solana, Litecoin, and Polygon saw inflows of $2.7 million, $1.3 million, and $1 million, respectively, after recent price declines.
Notably, multi-asset products received $98 million in inflows, indicating that some investors view the altcoin market’s weakness as an opportunity to buy, CoinShares analysts point out.
Regionally, the US led the outflow with $475 million, followed by Canada with $109 million. Outflows were also recorded in Germany and Hong Kong, amounting to $24 million and $19 million, respectively. In contrast, Switzerland and Brazil experienced inflows of $39 million and $8.5 million, respectively.
The past week marked the lowest traded volumes on exchange-traded products (ETPs) since the launch of US ETFs in January, totaling just $6.9 billion.
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