Digital asset investment products experienced outflows of $1.2 billion for the second week in a row, for a total of $584 million. According to CoinShares, this could be a result of possible pessimism among investors about possible Fed rate cuts. 📉
Bitcoin was the hardest hit, with outflows of $630 million, according to CoinShares' Digital Asset Fund Flows Weekly Report, although short positions did not increase significantly. Ethereum also couldn't escape the negative sentiment, with an exit of $58 million last week. However, some altcoins have benefited from the recent price weakness. These altcoins include investment products designed for Solana, Litecoin and Polygon. 🚀
During the same period, XRP and Chainlink-based investment products also experienced small inflows of $0.7 million and $0.3 million, respectively. The Europe-focused investment firm stated that investors see the decline in the altcoin market as an opportunity to buy at lower prices.
Trading activity on crypto ETPs hit a low point last week, with global volumes standing at just $6.9 billion. However, Switzerland and Brazil bucked the negative trend with inflows of $39 million and $48.5 million, respectively.