A new report reveals a decline in investor appetite for digital asset investment products, with outflows totaling $206 million for the second consecutive week.
What Happened: This trend coincides with a decrease in trading volumes for Exchange Traded Products (ETPs) to US$18 billion, according to a report from Coinshares.
The data suggests a potential shift in sentiment among ETP and ETF investors.
The lower volume percentage compared to total Bitcoin (CRYPTO: BTC) volumes, which are currently rising, might be a response to expectations of the FED maintaining high interest rates for longer than initially anticipated.
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This could be impacting investor willingness to enter the market through these vehicles.
The negative sentiment seems primarily focused on U.S. ETFs, with $244 million in outflows.
Established ETFs are bearing the brunt of this trend, while newly launched ones continue to see inflows, albeit at a lower rate than previously.
Canada and Switzerland offer a contrasting picture, with inflows of $30 million and $8 million, respectively.
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Also Read: Bitcoin In The Danger Zone: Is A 20% Price Crash Imminent?
Bitcoin Outflows Offset By Short Bitcoin Apathy
Bitcoin itself witnessed $192 million in outflows.
Interestingly, this wasn’t accompanied by a significant rise in short-selling activity, with short-Bitcoin products experiencing $0.3 million in outflows.
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This suggests investors are hesitant to bet against Bitcoin despite the recent price decline.
Ethereum And Multi-Asset Products Show Divergent Trends
Ethereum (CRYPTO: ETH) followed a different path, experiencing its sixth consecutive week of outflows, totaling $34 million.
However, multi-asset investment products saw a more positive trend, with inflows of $9 million last week.
Additionally, Litecoin (CRYPTO: LTC) and Chainlink (CRYPTO: LINK) defied the overall trend with inflows of $3.2 million and $1.7 million, respectively.
Blockchain Equities Remain Wary Of Halving Impact
The report also highlights the ongoing apprehension surrounding the upcoming Bitcoin halving.
Blockchain equities faced their eleventh consecutive week of outflows, totaling $9 million.
This reflects investor concerns about the potential impact of the halving on mining company profitability.
Meanwhile, according to SoSo value, Bitcoin spot ETFs had a total net inflow of $59.558 million on Friday, the first net inflow after net outflows in the past 5 days.
Grayscale ETF (OTC:GBTC) had a net outflow of $45.8246 million, Fidelity ETF (BATS:FBTC) had a net inflow of $54.7707 million and BlackRock ETF (NASDAQ:IBIT) had a net inflow of $29.2758 million.
What’s Next: With the cryptocurrency market experiencing a period of flux, Benzinga’s upcoming Future of Digital Assets event on Nov. 19 promises to be a valuable platform for investors and enthusiasts alike.
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