Global Crypto Investment Trends

Global crypto investment products at asset managers like BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares ended a three-week streak of nearly $2 billion in net inflows with a $147 million outflow last week, as reported by CoinShares.

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

Weekly Crypto Asset Flows

Global bitcoin-based funds experienced the largest net outflows, amounting to $159 million, while short-bitcoin investment products attracted net inflows of $2.8 million. Negative flows were primarily driven by funds from the U.S. ($209 million outflow), Germany ($8.3 million), and Hong Kong ($7.3 million). In contrast, Canadian and Swiss products somewhat mitigated the downturn, reporting net inflows of $43 million and $34.9 million, respectively.

Despite lower overall volumes in the broader crypto market, trading volumes for global crypto investment products rose by 15% last week to $10 billion.

Bitcoin’s price stands at $63,595, up 2.6% in the last 24 hours, having fallen to $60,000 earlier last week but showing a year-to-date increase of 46.6%.

Multi-Asset Investment Products Defy the Trend

Ethereum-based products resumed net outflows of $28.9 million last week as investor interest remained lackluster. Conversely, multi-asset investment products, which provide exposure to various cryptocurrencies, saw net inflows of $29.4 million; this marks their 16th week of positive flows, totaling $431 million.

“Since June, multi-asset products have been a favorite among investors who prefer a diversified basket of assets,” Butterfill remarked, noting it now represents 10% of assets under management at global crypto fund managers.

The GMCI 30 index, reflecting the top 30 cryptocurrencies, increased by 2.5% in the last 24 hours to 118.20 but has decreased roughly 5% over the past week.