Global Crypto Investment Trends

Global crypto investment products offered by managers like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares recently ended a nearly $2 billion net inflow streak, experiencing a $147 million exit last week, according to CoinShares.

“Higher than expected economic data last week, reducing the probabilities for significant rate cuts are the likely reason for the weaker sentiment amongst investors,” James Butterfill, CoinShares Head of Research, noted in a report on Monday.

Weekly Crypto Asset Flows

Bitcoin-based funds led the outflows, totaling $159 million, while short-bitcoin products experienced a net inflow of $2.8 million. Negative flows were dominated by funds in the U.S. ($209 million), Germany ($8.3 million), and Hong Kong ($7.3 million), although Canadian ($43 million) and Swiss ($34.9 million) products registered net inflows to mitigate some losses.

Despite lower volumes in the broader crypto market, trading volumes for global crypto investment products increased by 15% to $10 billion, Butterfill added.

As of now, Bitcoin is trading at $63,595, gaining 2.6% over the past 24 hours. However, it had previously fallen to a low of around $60,000 last week, remaining up 46.6% year-to-date.

Multi-Asset Investment Products

Ethereum-based products resumed their outflows with a total of $28.9 million, reigniting a trend of “lackluster” investor interest, according to Butterfill. In contrast, multi-asset investment products saw net inflows of $29.4 million, marking their 16th consecutive week of positive flows and totaling $431 million.

“Since June, multi-asset products have been a favorite among investors who prefer to invest in a diversified basket of assets rather than individual ones,” Butterfill commented. They now represent 10% of assets under management at global crypto fund managers.

The GMCI 30 index, which tracks the top 30 cryptocurrencies, gained 2.5% in the past 24 hours to reach 118.20, although it is down approximately 5% over the past week.