Crypto Investment Product Volume Is ‘Lowest Since October 2020’
Volumes in digital asset investment products remained very low, generating $901 million last week, the lowest since October 2020.
This is according to the new reports on digital asset fund flows from CoinShares, as shared with Financial tycoon.
According to CoinShares, digital asset investment products saw minor outflows last week totaling $27 million. Two weeks ago, registered weekly crypto outflows were $9 million.
The digital asset management firm explained that this adds up to a total outflow of $46 million over the past three weeks.
“While history indicates this is partly due to seasonal effects, we believe it also highlights continued apathy following recent price declines,” CoinShares said.
Outflow by asset
Meanwhile, CoinShares explained that in terms of crypto investment products over the past three weeks, Bitcoin was “almost exclusively the focus of outflows”.
During the period, outflows from investment products in the leading digital asset amounted to USD 29 million.
Furthermore, the firm observed, investors have continued to add short-Bitcoin investment products. This form of investment generated US$1 million last week, CoinShares said.
“Both imply minimal but continued investor caution, which we believe is due to the ongoing hawkish rhetoric from the US Federal Reserve,” the firm pointed out, however.
Aside from Bitcoin, CoinShares said Ether recorded smaller outflows last week. Outflows in the second largest cryptocurrency were USD 1 million.
The investment company explained that this means that despite increased confidence in the upgrade to the Ethereum network or The Merge expected in September, most investors choose to wait for the transition to proof-of-stake to happen first.
“Very small inflows were seen in Solana, Cardano, XRP, Tezos, Chainlink and Uniswap,” CoinShares added.
Regional outflow
According to CoinShares, smaller outflows were recorded in digital asset investment products from different regions of the world.
However, the firm pointed out that, by comparison, outflows came mainly from the US ($20 million), Sweden ($4.2 million) and Germany ($2.3 million).
CoinShares noted that Brazil sat at the far end or “was the only outlier”, registering smaller inflows totaling $1.2 million.
Volumes in digital asset investment products remained very low, generating $901 million last week, the lowest since October 2020.
This is according to the new reports on digital asset fund flows from CoinShares, as shared with Financial tycoon.
According to CoinShares, digital asset investment products saw minor outflows last week totaling $27 million. Two weeks ago, registered weekly crypto outflows were $9 million.
The digital asset management firm explained that this adds up to a total outflow of $46 million over the past three weeks.
“While history indicates this is partly due to seasonal effects, we believe it also highlights continued apathy following recent price declines,” CoinShares said.
Outflow by asset
Meanwhile, CoinShares explained that in terms of crypto investment products over the past three weeks, Bitcoin was “almost exclusively the focus of outflows”.
During the period, outflows from investment products in the leading digital asset amounted to USD 29 million.
Furthermore, the firm observed, investors have continued to add short-Bitcoin investment products. This form of investment generated US$1 million last week, CoinShares said.
“Both imply minimal but continued investor caution, which we believe is due to the ongoing hawkish rhetoric from the US Federal Reserve,” the firm pointed out, however.
Aside from Bitcoin, CoinShares said Ether recorded smaller outflows last week. Outflows in the second largest cryptocurrency were USD 1 million.
The investment company explained that this means that despite increased confidence in the upgrade to the Ethereum network or The Merge expected in September, most investors choose to wait for the transition to proof-of-stake to happen first.
“Very small inflows were seen in Solana, Cardano, XRP, Tezos, Chainlink and Uniswap,” CoinShares added.
Regional outflow
According to CoinShares, smaller outflows were recorded in digital asset investment products from different regions of the world.
However, the firm pointed out that, by comparison, outflows came mainly from the US ($20 million), Sweden ($4.2 million) and Germany ($2.3 million).
CoinShares noted that Brazil sat at the far end or “was the only outlier”, registering smaller inflows totaling $1.2 million.
