Crypto products experienced their second consecutive week of outflows, totaling $584 million, contributing to a total outflow of $1.2 billion in the market. According to insights from asset management firm CoinShares, this trend may be attributed to the prevailing investor pessimism surrounding potential interest rate cuts by the Federal Reserve this year.
Amidst this market sentiment, Bitcoin (BTC) was notably the primary target of outflows, with a withdrawal of $630 million last week. Interestingly, despite the negative sentiment surrounding BTC, investors did not significantly increase their short positions, with outflows only amounting to $1.2 million.
Furthermore, the altcoin market also faced a downturn, with Ethereum (ETH) witnessing outflows of $58 million. However, certain altcoins like Solana, Litecoin, and Polygon saw inflows of $2.7 million, $1.3 million, and $1 million respectively, following recent price corrections.
In a noteworthy development, multi-asset products received inflows of $98 million, indicating that some investors view the weakness in the altcoin market as an opportunity for strategic buying, as highlighted by analysts at CoinShares.
Regionally, the United States led the outflow with $475 million, trailed by Canada with $109 million. Outflows were also observed in Germany and Hong Kong, totaling $24 million and $19 million, respectively. Conversely, Switzerland and Brazil experienced inflows of $39 million and $8.5 million, displaying varying investor sentiments across different regions.
Additionally, the past week saw the lowest traded volumes on exchange-traded products (ETPs) since the launch of US ETFs in January, amounting to just $6.9 billion. This indicates a cautious approach from investors amidst the current market conditions.
