There was a small total outflow of $147 million in crypto asset investment products last week. The fact that economic data came in above expectations is seen as the main reason behind this outflow. While investors focused on Bitcoin and realized an outflow of $159 million in this asset, there was an inflow of $2.8 million in short Bitcoin positions. A positive flow was observed in multi-asset investment products for the 16th consecutive week with an inflow of 29 million dollars.
Investor sentiment “weakened”
The outflow observed in crypto asset investment products last week was recorded as 147 million dollars. The biggest factor behind these outflows is the fact that economic data came in above expectations and, as a result, the possibility of central banks reducing interest rates decreased. Investors seem to have reduced their risk appetite, especially considering that large interest rate cuts are now less likely. This weakening investor sentiment was also reflected in trading volumes. Transaction volume in investment products increased to $10 billion, with only a small increase of 15% on a weekly basis. However, there has been a significant decline in trading volumes in the broader cryptocurrency markets. This shows that crypto investors are generally more cautious and cautious about valuing their assets.
When examined on a regional basis, different trends in the markets stand out. Canada and Switzerland showed a more positive picture compared to other markets. Canada recorded an inflow of $43 million and Switzerland recorded an inflow of $35 million, and these countries joined the bull market trend. However, there were significant outflows in countries such as the USA, Germany and Hong Kong. While an outflow of 209 million dollars was observed from investment products in the USA, an outflow of 8.3 million dollars and 7.3 million dollars was recorded in Germany and Hong Kong, respectively. These data reveal that the approach to cryptocurrency investments varies in different geographies.
Focus on Bitcoin and Ethereum increased
Investors focused specifically on Bitcoin last week. While there was a total outflow of $159 million in Bitcoin, there was an inflow of $2.8 million in short Bitcoin positions. The increase in entries into short positions shows that some investors expect a decrease in the price of Bitcoin. This trend reveals that uncertainty prevails regarding Bitcoin’s future price movements. Ethereum, on the other hand, got its share of this negative atmosphere. There was an outflow of $29 million from Ethereum last week. As investors continue to lose interest in Ethereum, prospects for this asset remain poor. Despite Ethereum’s wider usage area and technological infrastructure, investor interest is not at the expected level under current market conditions.
Investors who want to follow a broader investment strategy continue to turn to multi-asset investment products. There was an inflow of $29 million in multi-asset investment products last week. This marks a positive flow for the 16th week in a row. These products, which have received a total inflow of $431 million since June, currently represent 10% of assets under management. Multi-asset products provide the opportunity to invest in multiple crypto assets, allowing the risk on a single asset to be distributed.
This investment strategy is becoming increasingly popular among investors. In particular, it stands out as an attractive option for investors who want to add different cryptocurrencies to their portfolios at the same time instead of a single asset. An inflow of just under $1 million in cryptocurrencies such as LTC, XRP, Cardano, Solana is noteworthy.
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