Global Crypto Investment Products Experience Net Outflows

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 $147 million exiting 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,” said CoinShares Head of Research James Butterfill in a Monday report.

Weekly Crypto Asset Flows

Imagery: CoinShares.

Bitcoin-based funds saw the highest outflows, totaling $159 million, while short-bitcoin investment products attracted $2.8 million in inflows. Funds in the U.S., Germany, and Hong Kong dominated negative outflows, losing $209 million, $8.3 million, and $7.3 million, respectively. Conversely, products from Canada and Switzerland partially offset losses with net inflows of $43 million and $34.9 million.

Trading volumes for global crypto investment products increased by 15% last week to $10 billion, despite lower volumes in the broader crypto market, Butterfill noted.

Bitcoin is currently trading at $63,595, having increased by 2.6% in the past 24 hours. Following an 8.5% drop to around $60,000 early last week, it remains up 46.6% year-to-date.

BTC/USD Price Chart

Image: The Block/TradingView.

Multi-Asset Investment Products Buck the Trend

Ethereum-based products resumed net outflows of $28.9 million last week, continuing a lackluster phase amidst low investor interest.

In contrast, multi-asset investment products, which provide exposure to a range of cryptocurrencies, added net inflows of $29.4 million, marking the 16th consecutive week of positive flows 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 pointed out. This trend has led them to represent 10% of global crypto fund managers' assets under management.

The GMCI 30 index, which tracks a selection of the top 30 cryptocurrencies, gained 2.5% over the last 24 hours to 118.20 but is down approximately 5% over the past week.