Cryptocurrency investment products saw over $300 million of outflows over the past week over “stronger-than-expected economic data” in the United States, with the data coming amid “widespread negative sentiment evident across various providers and regions.”
According to CoinShares’ latest Digital Asset Fund Flows report, cryptocurrency investment products saw $305 million of ouflows over the past week, driven by the strong economic data coming out of the US that diminished the likelihood of a 50-basis point interest rate cut. “
Investment products offering exposure to the flagship cryptocurrency Bitcoin saw outflows of $319 million over the past week, while products shorting BTC saw inflows of $4.4 million, the largest figure since March.
Meanwhile, products focused on the second-largest cryptocurrency by market capitalization, Ethereum, saw $5.7 million of outflows as trading volumes stagnated to reach just 15% of the volumes seen when spot Ether exchange-traded funds (ETFs) were launched in the United States.
The report details that altcoins, in general, saw significant inflows, with products focusing on various digital currencies seeing $6.4 million of inflows, and Solana leading the altcoin space with $7.6 million of inflows.
Products focusing on Binance’s BNB, Litecoin, and Cardano all saw inflows between $800,000 and $300,000, according to CoinShares’ report.
Cryptocurrency investment products are seeing outflows at a time in which the cryptocurrency space has endured a significant drawdown, with Bitcoin dropping more than 8.5% over the past week after seeing a $64,000 high at the end of last month.
The flagship cryptocurrency is now trading at $58,000, down significantly from its all-time high seen earlier this year above the $73,000 mark. The space’s total market capitalization fell to around $2.04 trillion, down from nearly $3 trillion at its peak.
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