Digital asset management firm CoinShares said institutional investors in cryptocurrencies withdrew hundreds of millions of dollars from crypto products last week.
In its latest digital asset fund flow report, CoinShares said institutional outflows from crypto investment products surged last week to the tune of $147 million, but this is due to a stronger-than-expected economy. It said this was likely due to the indicators reducing the likelihood of a significant rate cut.
“Last week, there were small outflows totaling USD 147 million from digital asset investment products. Weakening investor sentiment was driven by stronger-than-expected economic data last week, reducing the likelihood of a significant rate cut. Weekly trading volume for ETP investment products increased slightly by 15% to $10, but the broader crypto market saw a decline in trading volume.
Source: CoinShares
By region, the United States led the way with $209 million in outflows, followed by Germany and Hong Kong, which lost $8.3 million and $7.3 million, respectively. Meanwhile, Canada and Switzerland provided inflows of $43 million and $35 million each.
As usual, Bitcoin (BTC) received the brunt of investor attention, with BTC short products enjoying $2.8 million in inflows while suffering $159 million in outflows.
Ethereum (ETH) also suffered outflows, but one sector of digital asset investment products recorded inflows for 16 consecutive weeks.
“Multi-asset investment products (MultiCoin) received inflows of USD 29 million, the 16th consecutive week of inflows. The total in recent weeks reached USD 431 million, representing 10% of assets under management. Since June, multi-asset products have become popular among investors who prefer to invest in a diverse basket of assets rather than individual assets.
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