Originally published on: October 07, 2024
In a surprising turn of events, cryptocurrency investment products saw outflows totaling $147 million last week, marking the end of a three-week streak of significant inflows as reported by CoinShares, a leading crypto investment firm.
According to CoinShares’ latest Digital Asset Fund Flows Weekly Report released on October 7th, the outflows occurred during the week of September 29th to October 5th. This sharp reversal followed a series of massive inflows that saw nearly $2 billion pouring into crypto products over the past three weeks.
The sudden outflows were largely attributed to more positive economic data, which diminished the likelihood of major rate cuts in the near future. Despite this, trading volumes only experienced a modest 15% increase in ETP investment products for the week while broader crypto markets saw lower activity.
Bitcoin, the dominant cryptocurrency, led the way in trading activity with investment products recording $159 million in outflows. Ether, the second largest cryptocurrency by market value, also faced outflows of $28.9 million, continuing a downward trend since the launch of ETH exchange-traded funds in the US earlier this year.
Interestingly, multi-asset investment products bucked the trend by attracting $29 million in inflows, marking their 16th consecutive week of positive investment. Since June, these multi-asset products have become a popular choice among investors seeking diversified exposure across various assets.
CoinShares’ head of research, James Butterfill, highlighted the sustained popularity of multi-asset products, which have amassed a total of $431 million in inflows over the past 16 weeks, representing 10% of assets under management.
The crypto investment landscape remains dynamic and evolving, and further updates will be provided as the situation develops.
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