Cryptocurrency investment products saw outflows of $584 million over the past week, which added to the previous week’s figure mean investors have taken around $1.2 billion from these products, although investments in altcoins grew significantly recently.
According to CoinShares’ Digital Asset Fund Flows weekly report, these outflows could be a result of “pessimism amongst investors for interest rate cuts” that the Federal Reserve could enact later this year.
The report details that investment products offering exposure to Bitcoin saw $630 million worth of outflows, while Ethereum-focused products saw $58.3 million in outflows. Products shorting BTC also saw outflows of #1.2 million, while Cardano-focused products saw $300,000 of outflows.
In a surprising twist, products focusing on multiple cryptocurrency saw $98 million of inflows in a single week, which to CoinShares suggests “investors seen the weakness in the altcoin market as a buying opportunity.” Year-to-date inflows for these products stands at $136 million, with the lion’s share of these funds coming just this past week.
These inflows came after the total market capitalization of the cryptocurrency space excluding Bitcoin, Ethereum, and stablecoins dropped from around $600 billion to $475 billion in just a month amid a significant market downturn that has seen BTC drop to the $61,000 mark.
Meanwhile, products offering exposure to Solana ($SOL) saw $2.7 million of inflows, while those offering exposure to Litecoin, a cryptocurrency often referred to as the silver to Bitcoin’s gold, saw $1.3 million of inflows.
Those offering exposure to XRP saw $700,000 of inflows, while products focusing on Chainlink ($LINK) saw $300,000 of inflows.
As reported, data has shown that long-term Bitcoin holders have started selling the holding they accumulated throughout the bear market back in January, when spot Bitcoin exchange-traded funds (ETFs) were listed in the United States. Long-term Ethereum holders, however, are still accumulating.
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