Altcoins
Crypto Investment Products See $1.2 Billion Outflow in Two Weeks as Investors See ‘Weakness’ in Altcoins
Cryptocurrency investment products saw outflows of $584 million last week, which when added to the previous week’s figure means investors took out around $1.2 billion from these products, although altcoin investments have grown significantly recently.
According to CoinShares Fund flows for digital assets weekly report, these outflows may be the result of “investor pessimism about interest rate cuts” that the Federal Reserve may implement later this year.
The report details that investment products offering exposure to Bitcoin saw outflows of $630 million, while Ethereum-focused products saw outflows of $58.3 million. Short BTC products also saw outflows of $1.2 million, while Cardano-focused products saw outflows of $300,000.
In a surprising twist, products focused on multiple cryptocurrencies saw inflows of $98 million in just one week, which CoinShares said suggests “investors saw the weakness in the altcoin market as a buying opportunity.” Year-to-date inflows for these products total $136 million, with the lion’s share of these funds arriving just last week.
These inflows came after the total market capitalization of the cryptocurrency sector, excluding Bitcoin, Ethereum and stablecoins, fell from around $600 billion to $475 billion in just a month, amid a significant downturn of the market which saw BTC fall to the $61,000 threshold.
Meanwhile, products offering exposure to Solana ($SOL) saw inflows of $2.7 million, while those offering exposure to Litecoin, a cryptocurrency often described as Bitcoin’s silver to gold, saw inflows of $1.3 million.
Those offering exposure to XRP saw inflows of $700,000, while products focused on Chainlink ($LINK) saw inflows of $300,000.
As reported, data showed that long-term Bitcoin holders began selling holdings accumulated during the bear market in January, when spot Bitcoin Exchange Traded Funds (ETFs) went public in the United States. Long-term Ethereum holders, however, they are still accumulating.
Featured image via Unsplash.