Last week, digital assets manager CoinShares reported a significant outflow of $584 million in crypto products, marking the second consecutive week of losses totaling $1.2 billion. This decline was attributed to investor pessimism surrounding potential interest rate cuts by the Federal Reserve. Additionally, global trading volumes for Exchange-Traded Products (ETPs) hit a new low at just $6.9 billion for the week.
The outflows were primarily seen in the US and Canada regions, accounting for $584 million, with additional losses in Germany and Hong Kong totaling $24 million and $19 million, respectively. On the other hand, Switzerland and Brazil experienced inflows of $39 million and $48.5 million. Bitcoin (BTC) led the outflow trend with $630 million, followed by Ethereum (ETH) with $58 million, Cardano (ADA) with $0.3 million, and other altcoins such as Solana (SOL), Litecoin (LTC), and Polygon (MATIC) with varying outflows.
In contrast to the overall outflows, multi-asset products actually saw inflows of $98 million, indicating that some investors viewed the weakness in the altcoin market as a potential buying opportunity. Despite the recent losses in crypto products, CoinShares believes that the ongoing market volatility presents both challenges and opportunities for investors looking to navigate the cryptocurrency space.
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