Crypto investors have fled digital asset investment products over the past two weeks. Has today’s positive price action finally made them net buyers?
BTC Decline: Spot BTC ETFs have been selling consistently over the past eight days of U.S. trading sessions, with the instruments experiencing $1 billion in net BTC outflows since crypto markets reached local highs late last month.
Record Week: Digital asset manager CoinShares reported that net outflows from crypto investment products totaled $726 million last week, matching the previous record set in March. With much of the selling coming from the U.S., CoinShares attributed the negative sentiment to “previous week’s better-than-expected macroeconomic data, which increased the likelihood of a potential 25 basis point (bp) rate cut by the U.S. Federal Reserve.”
Bankless Take:
The fixation on liquidity attracts investors who seek insights into crypto sentiment through daily investment product AUM fluctuations, but these data points are often correlated with crypto performance and have minimal impact on price, other than through the reflexive retail sentiment they inspire.
