Crypto asset investment products are becoming noticeably imbalanced with recent developments. For the second consecutive week, there has been a total outflow of 206 million US dollars. The outflows are particularly influenced by the volatility in the cryptocurrency market. Bitcoin and other cryptocurrencies have indeed experienced significant declines recently.
Trading Volumes in ETPs
While trading volumes in ETPs slightly dropped to 18 billion dollars, it is particularly noteworthy that this figure, representing 28% of total Bitcoin volumes, is lower compared to the 55% ratio a month ago. This appears to be a reflection of the uncertainties in the market and the cautious attitudes of investors.
According to data, the appetite of ETP/ETF investors continues to decrease. It seems likely that expectations of the FED keeping interest rates high for longer than anticipated are influencing this decline.
Outflows in the US
Regionally, the negative sentiment stemming from US ETFs is clear. While observing an outflow of 244 million US dollars, these outflows focus on existing ETFs, with a noticeable drop in entries into newly issued ETFs. However, entries continue in Canada and Switzerland.
Canada saw approximately 30 million dollars in entries, while Germany and Sweden experienced outflows of 8.3 million dollars and 6.7 million dollars, respectively.
Continued Outflows in Ethereum
Ethereum also experienced an outflow of 34 million dollars in its sixth consecutive week. On the other hand, a recovery was seen last week in multi-assets with an entry of 9 million US dollars. Litecoin and Chainlink saw entries of 3.2 million US dollars and 1.7 million US dollars, respectively.
As seen in the graph above, institutional investors have provided capital for LTC, LINK, XRP, Cardano, and Polkadot. Bitcoin saw an outflow of 192 million dollars. Interestingly, the number of investors seeing this outflow as a short-selling opportunity seems to have decreased, as Bitcoin-focused shorts only showed an outflow of 300 thousand dollars.
Blockchain stocks have also experienced an outflow of 9 million dollars for the 11th consecutive week, as investors continue to express concerns over mining companies.
