Crypto Investment Products See $1.2 Billion Outflow in Two Weeks as Investors See ‘Weakness’ in Altcoins

Cryptocurrency investment products saw outflows of $584 million over the past week, which added to the previous week’s figure mean investors have taken around $1.2 billion from these products, although investments in altcoins grew significantly recently.

According to CoinShares’ Digital Asset Fund Flows weekly report, these outflows could be a result of “pessimism amongst investors for interest rate cuts” that the Federal Reserve could enact later this year.

The report details that investment products offering exposure to Bitcoin saw $630 million worth of outflows, while Ethereum-focused products saw $58.3 million in outflows. Products shorting BTC also saw outflows of #1.2 million, while Cardano-focused products saw $300,000 of outflows.

In a surprising twist, products focusing on multiple cryptocurrency saw $98 million of inflows in a single week, which to CoinShares suggests “investors seen the weakness in the altcoin market as a buying opportunity.” Year-to-date inflows for these products stands at $136 million, with the lion’s share of these funds coming just this past week.

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These inflows came after the total market capitalization of the cryptocurrency space excluding Bitcoin, Ethereum, and stablecoins dropped from around $600 billion to $475 billion in just a month amid a significant market downturn that has seen BTC drop to the $61,000 mark.

Meanwhile, products offering exposure to Solana ($SOL) saw $2.7 million of inflows, while those offering exposure to Litecoin, a cryptocurrency often referred to as the silver to Bitcoin’s gold, saw $1.3 million of inflows.

Those offering exposure to XRP saw $700,000 of inflows, while products focusing on Chainlink ($LINK) saw $300,000 of inflows.

As reported, data has shown that long-term Bitcoin holders have started selling the holding they accumulated throughout the bear market back in January, when spot Bitcoin exchange-traded funds (ETFs) were listed in the United States. Long-term Ethereum holders, however, are still accumulating.

Featured image via Unsplash.

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• Source: https://www.cryptoglobe.com/latest/2024/06/crypto-investment-products-see-1-2-billion-outflow-in-two-weeks-as-investors-see-weakness-in-altcoins/