Global cryptocurrency investment products from asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw $147 million exit funds last week, ending their third consecutive week of net inflows of nearly $2 billion, according to CoinShares.
“Last week’s stronger-than-expected economic data, which has reduced the likelihood of a significant interest rate cut, is likely the reason investor sentiment has weakened,” James Butterfill, head of research at CoinShares, said in a report Monday. .
Weekly cryptocurrency asset flows. Image: CoinShares.
Global Bitcoin-based funds led net outflows of $159 million, while short Bitcoin investment products recorded net outflows of $2.8 million. Funds in the United States, Germany, and Hong Kong led the negative trends, recording losses of $209 million, $8.3 million, and $7.3 million, respectively. Meanwhile, products based in Canada and Switzerland recorded net inflows worth $43 million and $34.9 million, offsetting some of the impact.
Butterfill added that despite the decline in volume seen in the broader cryptocurrency market, trading volume for global cryptocurrency investment products increased 15% to $10 billion during the week.
According to The Block’s Bitcoin price page, Bitcoin is currently trading at $63,595 and is up 2.6% in the last 24 hours. But the most important cryptocurrency fell 8.5% to around $60,000 early last week before recovering. It has maintained a 46.6% increase so far this year.
BTC/USD price chart. Image: Block/TradingView.
Multi-asset investment products are products that go against trends.
Ethereum-based products, which just broke a five-week decline last week, were no exception and resumed net outflows of $28.9 million globally last week amid “lackluster” investor interest in the asset, Butterfill said.
However, multi-asset investment products that consolidate exposure to a variety of cryptocurrencies bucked the trend, adding $29.4 million in net inflows and recording its 16th consecutive week of positive flows, for a total of $431 million.
“Since June, multi-asset products have been gaining favor among investors who prefer to invest in a diverse basket of assets rather than individual assets,” Butterill said. It tends to account for 10% of assets managed by global cryptocurrency fund managers.
The GMCI 30 index, which represents the top 30 cryptocurrencies, rose 2.5% to 118.20 in the last 24 hours, but is down about 5% over the past seven days.
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