Crypto Asset Investment Products Face Outflows Last Week Last Week

Macroeconomic factors have led to investors being cautious, and crypto asset investment products have experienced capital outflows for two consecutive weeks.

Coinshares' latest weekly report shows that the total outflow of crypto asset investment products reached US$584 million this week, continuing the trend last week. This brought the total outflows in the past two weeks to about $1.2 billion, reversing the three consecutive weeks of capital inflows in early March.

This outflow of funds reflects an increasing caution among investors, especially in dealing with macroeconomic factors. James Butterfill, head of research at Coinshares, linked the trend to uncertainty in the Fed's interest rate policy, saying it was a reflection of investors' pessimistic sentiment about the Fed's expectations for a rate cut this year.

The report also pointed out that market participation has dropped sharply, with global exchange-traded products (ETPs) trading volume this week at only $6.9 billion, the lowest level since the launch of the US Bitcoin ETF in January. The decline in ETP trading volume may also be related to the slow progress in US Bitcoin ETF applications this year.

Bitcoin leads the decline, some altcoins rise against the trend

The outflow of funds was mainly concentrated in the United States, reaching US$475 million, followed by Canada's CAD 109 million. Germany and Hong Kong also experienced outflows of US$24 million and US$19 million respectively. In contrast, Switzerland and Brazil recorded inflows of $39 million and $48.5 million, respectively.

Bitcoin is still the center of capital outflow, with outflows reaching $630 million this week. However, market sentiment has not turned completely bearish, as the outflow of short Bitcoin products was only $1.2 million, indicating a lack of bearish confidence among investors.

Ethereum also experienced a $58 million outflow, reflecting a wider risk aversion sentiment. But some altcoins rose against the trend, with Solana, Litecoin and Polygon recording modest inflows of $2.7 million, $1.3 million and $1 million respectively.

These flows suggest that some investors may be taking advantage of the price pullback opportunity to seek to allocate alternative assets to reduce risks. Multi-asset products also performed strongly, attracting $98 million inflows. This could mean investors are diversifying their portfolios or taking advantage of recent altcoins pullback opportunities for multi-asset allocation.

Macroeconomic sentiment dominates investor behavior

Coinshares' data reflects the current market environment, which is still affected by the macroeconomic outlook and central bank policy expectations. As investors' expectations for interest rate cuts weaken, the flow of funds in digital asset funds has turned negative. The shift follows five consecutive months of capital inflows earlier this year, indicating a significant change in market behavior.

It is worth noting that the decline in ETP trading volume may also reflect the wait-and-see sentiment of investors waiting for further market direction guidance.

Although Bitcoin and Ethereum are the main drivers of recent capital outflows, the inflow of capital from some altcoins and multi-asset products suggests that market sentiment is not a completely consistent risk aversion, but rather some subtle differences.

The above is the detailed content of Crypto Asset Investment Products Face Outflows Last Week Last Week. For more information, please follow other related articles on the PHP Chinese website!