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Crypto investment products see $305 million in weekly outflows

Crypto investment products see $305 million in weekly outflows

GrafaGrafa2024/09/03 03:35
By:Isaac Francis

A recent report by CoinShares reveals that crypto investment products recorded significant outflows last week, with total withdrawals surpassing $305 million as of August 31, 2024. 

This trend suggests a broader negative sentiment among investors, driven in part by stronger-than-expected economic data in the United States. 

The US alone led the outflows, contributing $318 million between August 26 and August 31, reflecting the highest Month-to-Date (MTD) net negative flows of $65 million.

Other regions also experienced similar trends, with Germany and Sweden seeing $7.3 million and $4.3 million in outflows, respectively. 

These countries ranked second and third for MTD outflows, totaling $13.4 million and $1.3 million. 

On the other hand, Canada reported positive net flows of $13.2 million, despite it being the country with the highest outflows Year-to-Date (YTD).

Bitcoin (CRYPTO:BTC), the cryptocurrency by market capitalization, was particularly affected, accounting for $319 million of the total outflows. 

Ethereum (CRYPTO:ETH) followed with $5.7 million in withdrawals. 

Most of the downturn was concentrated in Bitcoin exchange-traded funds (ETFs). 

The ARK 21Shared Bitcoin ETF (ARKB) experienced the largest outflows at $220.95 million, followed by Grayscale Bitcoin Trust (GBTC) with $119.19 million, and ProShares Bitcoin Strategy ETF (BITO) with $78.28 million. 

Meanwhile, iShares Bitcoin Trust ETF (IBIT) recorded positive inflows of $210.55 million.

Ethereum ETFs showed minimal trading activity throughout the week, with no inflows or outflows on August 30. 

Solana-based products, in contrast, registered $7.6 million in inflows, indicating some positive momentum in specific crypto assets despite the broader market downturn. 

The report suggests that crypto market sentiment will remain highly sensitive to future interest rate expectations as the Federal Reserve approaches its next policy decision.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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