Coinfeeds Daily → $584 million outflow from crypto investment products, crypto ETP volume hits low

$584 million outflow from crypto investment products, crypto ETP volume hits low

Published: Jun 25, 2024 | Last Updated: Jun 25, 2024
Howard Kane
Outflow from crypto investment products
Image: Outflow from crypto investment products

Investors withdraw massive funds from Bitcoin and other crypto products, while altcoins gain traction.

The cryptocurrency market is currently undergoing a significant correction, with notable changes in investment patterns and trading volumes. This article breaks down the key developments and what they mean for investors.

Massive Outflows from Crypto Investment Products

According to a report by CoinShares, investors withdrew $584 million from crypto-related investment products last week. This trend is not new; it continued from the previous week, resulting in nearly $1.2 billion in outflows over the past two weeks. The most affected were Bitcoin investment products, which saw the largest outflows, totaling $630 million.

Declining Trading Volumes for Crypto ETPs

Trading volumes for cryptocurrency Exchange-Traded Products (ETPs) have also hit new lows. For the week, the total trading volume was just $6.9 billion. This decline in trading volume is a clear indicator of reduced investor interest and activity in the crypto market during this correction phase.

Shift in Investor Focus

Despite the significant outflows from Bitcoin and other major cryptocurrencies, some altcoins and multi-asset investment products have seen inflows. This suggests that investors are diversifying their portfolios and shifting their focus towards these alternative assets. The inflows into altcoins and multi-asset products indicate a search for potentially higher returns or safer investments amid the market's volatility.

In conclusion, while the current market correction has led to significant outflows and reduced trading volumes, it also highlights the importance of diversification and staying informed. Investors should carefully consider their strategies to navigate this volatile landscape effectively.


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