The latest market update from digital asset firm CoinShares reveals that crypto-based investment products have recorded a second consecutive week of outflows totaling $584 million.
CoinShares analysts attributed this to investor pessimism regarding potential interest rate cuts by the Federal Reserve this year. The report also noted that last week saw the lowest volumes traded on ETPs globally since U.S. spot ETFs launched this year, with only $6.9 billion traded for the week.
US Sees Highest Outflow
Regionally, the U.S. spot Bitcoin ETF market experienced the largest outflows at $475 million. Yet, its month-to-date (MTD) flow remains positive at $945 million, with a year-to-date (YTD) inflow figure of $16.35 billion.
In Canada, crypto investment products saw significant outflows of $109 million last week, bringing the MTD total to a negative $111.5 million. Germany and Hong Kong also experienced outflows of $24 million and $19 million, respectively.
Sweden had the lowest negative flow for the week at $5.3 million, resulting in a negative $28.8 million for the MTD timeframe. Conversely, Switzerland, Brazil, and Australia bucked the trend, with inflows of $39 million, $48.5 million, and $800,000, respectively.
Despite the weekly outflows across all regions totaling $584 million, the MTD remains positive at $857 million, with a YTD figure of $15.95 billion.
Bitcoin ETPs Drained of $630M
Furthermore, the report highlighted that Bitcoin was the primary victim of the outflows, with $630 million in negative flows at the end of last week. This emerged as Bitcoin continued to hit lower prices daily, reaching a low of $60,674 today.
Interestingly, despite the negative sentiment, investors did not add to short positions, resulting in short Bitcoin seeing $1.2 million in outflows.
Meanwhile, Bitcoin’s closest rival, Ethereum, also suffered from the negative sentiment, experiencing $58 million in outflows. However, various altcoins defied the Bitcoin trend and recorded inflows amid broad price weakness.
Specifically, crypto investment products tied to Solana (SOL), Litecoin (LTC), and Polygon (MATIC) witnessed inflows of $2.7 million, $1.3 million, and $1 million, respectively. At the same time, XRP investment products saw a more modest one-week inflow of 700K. The new figure brings XRP’s MTD total to $2.9 million and the YTD total to $18 million.
According to CoinShares analysts, the $98 million in inflows into multi-asset products suggest that investors viewed the weakness in the altcoin market as a buying opportunity.
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