In the most recent market update from digital asset company CoinShares, it has been reported that investment products based on cryptocurrency have seen a second consecutive week of outflows totaling $584 million. Analysts at CoinShares have attributed this to investor concerns about potential interest rate cuts by the Federal Reserve this year. The report also highlights that last week saw the lowest trading volumes on exchange-traded products (ETPs) globally since the launch of U.S. spot ETFs earlier this year, with only $6.9 billion traded for the week.
The United States has witnessed the highest outflows in the spot Bitcoin ETF market, amounting to $475 million. Despite this, the month-to-date flow remains positive at $945 million, with a year-to-date inflow of $16.35 billion. In Canada, crypto investment products saw significant outflows of $109 million, leading to a negative month-to-date total of $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 month-to-date period. On the other hand, Switzerland, Brazil, and Australia saw inflows of $39 million, $48.5 million, and $800,000, respectively, defying the overall trend of outflows.
While there were weekly outflows across all regions totaling $584 million, the month-to-date total remains positive at $857 million, with a year-to-date figure of $15.95 billion.
The report also revealed that Bitcoin was the most affected by the outflows, with $630 million in negative flows by the end of last week. This occurred as Bitcoin continued to experience daily declines, reaching a low of $60,674 today. Despite the negative sentiment, investors did not increase short positions, resulting in short Bitcoin seeing $1.2 million in outflows.
In addition, Ethereum also suffered from negative sentiment, with $58 million in outflows. However, some altcoins defied this trend and saw inflows amid general price weakness. Products tied to Solana (SOL), Litecoin (LTC), and Polygon (MATIC) recorded inflows of $2.7 million, $1.3 million, and $1 million, respectively. XRP products saw a more modest one-week inflow of $700,000, bringing the month-to-date total to $2.9 million and the year-to-date 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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