Global Digital Asset Products See $147 Million Outflow, But Trading Volumes Surge 15%

Digital asset investment products witnessed a net outflow of $147 million last week, according to CoinShares' latest report. This marks the first week of outflows in the past four weeks, following a period of consistent inflows.

Despite these outflows, trading activity in digital asset products surged by 15%, even as the broader cryptocurrency market saw a slowdown.

Regionally, Canada and Switzerland bucked the trend, reporting inflows of $43 million and $35 million, respectively. In contrast, the U.S., Germany, and Hong Kong recorded significant outflows of $209 million, $8.3 million, and $7.3 million, respectively.

Bitcoin and Ethereum: Investor Sentiment Wanes

Bitcoin remained a focal point for investors, with $159 million in outflows from Bitcoin-related products, coinciding with recent market volatility. Meanwhile, short-Bitcoin products, reflecting a bearish outlook, attracted inflows of $2.8 million.

According to CryptoSlate data, Bitcoin is currently trading at around $63,000, representing a 2% rise in the last 24 hours. The leading digital asset had dipped below $60,000 last week before recovering to its present level.

Ethereum, which recently ended a five-week streak of outflows, saw renewed outflows of $29 million last week. CoinShares' James Butterfill noted that investor interest in Ethereum remains subdued. In contrast, Solana was the only major altcoin to record significant inflows, totaling $5.3 million for the week.

Multi-Asset Funds Shine Amid Market Turbulence

Multi-asset investment products, offering diversified exposure to several digital assets, continued to shine, with net inflows of $29.4 million. This marked the 16th consecutive week of positive inflows, bringing the total to $431 million since June. Butterfill highlighted that these products have become increasingly popular, now accounting for 10% of assets under management by global crypto fund managers.