In a recent report by CoinShares, it was revealed that the digital asset investment market experienced outflows of over $1.2 billion in the past two weeks. This decline was led by Bitcoin and Ethereum, reflecting a downward trend in BTC price following its recent rejection in the $71k area. Crypto exchange-traded products (ETPs) particularly saw outflows of $584 million within a week, with a major portion of these outflows occurring in the US market.
Bitcoin ETPs experienced the largest outflows, totaling over $630 million, while Ether products saw $58 million exiting the market, leading to a combined outflow of over $688 million for the top two cryptocurrencies. According to CoinShares head of research James Butterfill, this pessimism among investors is likely a response to the uncertainty surrounding potential interest rate cuts by the FED this year. These outflows were highlighted as indicative of a correction underway in the market, as the total volume for the week was reported at just $6.9 billion.
Additionally, miners selling has further added to the downward pressure on BTC, while Ethereum has also seen a decline to below $3,200, ahead of a potential approval of Ether spot ETFs for trading next week. Altcoins such as Solana, Litecoin, and Polygon experienced inflows despite the outflow trend seen in Bitcoin and Ethereum. This trend saw Solana with $2.7 million in inflows, whereas Litecoin and Polygon saw $1.3 million and $1 million respectively.
Butterfill also pointed out that multi-asset products saw $98 million in inflows, suggesting that investors view the weakness in the altcoin market as a buying opportunity. Overall, the report indicates a notable shift in the digital asset investment products market over the past two weeks.
