$206M Outflows Signal Investor Caution

According to the report, the momentum of crypto investment products slowed for the second consecutive week, with total outflows reaching $206 million. Report by CoinShares. Exchange traded product (ETP) trading volume decreased slightly during the period to $18 billion. Importantly, these numbers represent the lower portion of Bitcoin’s total volume, currently at 28% compared to 55% a month ago. Data analysis shows that interest from ETP/ETF investors has declined, which may be due to expectations of higher interest rates from the Federal Reserve over time.

Looking at regional trends, the negative sentiment primarily stems from US ETFs, which are bearing the brunt of $244 million in outflows. Interestingly, while outflows were concentrated in existing ETFs, newly introduced ETFs saw inflows, albeit at a significantly subdued rate compared to the previous week. In contrast, Canada and Switzerland saw inflows of $30 million and $8 million, respectively, and Germany saw smaller outflows amounting to $8 million.

Cryptocurrency flow: Bitcoin outflow, Ethereum continuous outflow

Shifting the focus to individual cryptocurrencies, Bitcoin experienced outflows amounting to $192 million, as evidenced by outflows from short Bitcoin positions of only $300,000. , there was a notable lack of investors taking advantage of short selling opportunities. Meanwhile, Ethereum continued to experience outflows for the sixth straight week, totaling $34 million. On a positive note, sentiment towards multi-asset investing is rising, with inflows totaling $9 million last week. Furthermore, Litecoin and Chainlink attracted inflows of $3.2 million and $1.7 million, respectively.

According to data obtained by CoinShares, blockchain stocks have seen weekly outflows for 11 consecutive weeks, totaling $9 million. This consistent trend stems from investor concerns about the impact of the halving on mining companies and indicates a cautious environment within this market segment. Nevertheless, due to reasons such as policy moves and macroeconomic changes, the cryptocurrency investment space is changing as it progresses and is a fluid situation with varying sentiments and changes in investor preferences. It has become.

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