Digital asset investment products experienced minor outflows of $147 million last week, according to a report from CoinShares. The downturn in investor sentiment was largely attributed to higher-than-expected economic data, which reduced the likelihood of significant interest rate cuts.
Despite this negative sentiment, trading volumes in exchange-traded products (ETPs) increased by 15% to $10 billion, showing a contrast to the declining volumes in broader crypto markets.
Canada Records Highest Inflows Last Week
Funds that were based on Bitcoin suffered the most outflows, at $159 million. Contrary to the general trend, however, short-Bitcoin investment products saw $2.8 million in inflows as some investors hedged against a possible drop in the price of Bitcoin.
The downward trend also struck Ethereum, as $29 million in withdrawals showed a declining level of investor interest.
In terms of regional outflows, the United States, Germany, and Hong Kong witnessed the largest outflows, with outflows of $209 million, $8.3 million, and $7.3 million, respectively.
A more positive picture was offered by Canada and Switzerland, whose $43 million and $34.9 million in inflows, respectively, somewhat countered the overall losses.
Multi-Asset Investment Products Attracts Investors
Interest in multi-asset investing products, which let users spread their risk over a variety of digital assets, hasn’t decreased. Inflows of $29 million were seen in these items, indicating a 16-week streak of positive flows.
A total of $431 million has been added to multi-asset funds since June; this represents 10% of all assets under management (AUM). Because these products provide safety and diversity over individual asset investments, investors are choosing them more and more.
As of now, Bitcoin is trading at $63,061.57, gaining 1.77% in the past 24 hours, though it recorded a 0.36% decline over the past week. The Fear and Greed Index is currently at a neutral level, indicating mixed market sentiment.
The market’s outlook remains cautious as investors await more clarity on macroeconomic conditions and potential regulatory developments affecting the digital asset space.