Crypto investment products experienced outflows of $147 million last week, reflecting weaker investor sentiment driven by stronger-than-expected economic data. The data suggests that reduced chances for significant interest rate cuts have dampened investor confidence.
According to CoinShares’ latest report, despite board-wide outflows, ETP trading volumes increased marginally by 15% to $10 billion for the week. Meanwhile, the broader crypto markets have been flat in terms of trading activity.
Regionally, Canada had the biggest inflows at $43 million, trailed by Switzerland at $35 million; this ensured continued bullishness in the trend. On the other hand, the U.S. saw heavy outflows of $209 million; outflows for Germany and Hong Kong were $8.3 million and $7.3 million, respectively.
Crypto investors turn away from Bitcoin, Ethereum
This still left Bitcoin in the red for investors, with outflows of $159 million. Meanwhile, short-Bitcoin products saw a minor inflow of $2.8 million, reflecting a partial consensus of bearish sentiment among some market participants. Ethereum did not avoid the red either, as outflows reached $29 million, signaling continued low interest in the asset.
Brighter still, multi-asset investment products continued their streak of success, pulling in $29 million in inflows. It represents a remarkable 16th consecutive week of positive momentum. Since June, multi-asset products have pulled in a total of $431 million, accounting for 10% of all assets under management.
But what their growing popularity does simply suggests is that it implies a preference among investors for diversified portfolios instead of making bets on one asset class in these turbulent market conditions.
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