Global crypto investment products at asset managers including BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares have ended a three-week streak of net inflows of nearly $2 billion. According to CoinShares, $147 million left the funds last week.
“Stronger-than-expected economic data last week, reducing the likelihood of a significant rate cut, may have contributed to the weakening of investor sentiment,” CoinShares head of research James Butterfill said in a report on Monday.
Global Bitcoin investment funds led the way with $159 million in net outflows, while Bitcoin short investment products attracted $2.8 million in net inflows. Funds in the United States, Germany and Hong Kong dominated the negative flows with losses of $209 million, $8.3 million and $7.3 million, respectively. Meanwhile, products based in Canada and Switzerland offset some of the impact by recording $43 million and $34.9 million in net inflows, respectively.
Global crypto investment products volumes increased 15% on the week to $10 billion, Butterfill added, despite lower volumes across the broader crypto market.
Bitcoin is currently trading at $62,998, up 1.4% over the past 24 hours. However, the top cryptocurrency by market capitalization fell 8.5% to a low of around $60,000 earlier last week before recovering. Year-to-date, it is still up 46.6%.
Multi-asset investment products buck the trend
After breaking a five-week negative streak last week, Ethereum products were no exception, posting net outflows of $28.9 million globally last week amid a lack of investor interest in the asset, Butterfill said.
However, multi-asset investment products (which combine exposure to multiple cryptocurrencies) bucked the trend, adding net inflows of $29.4 million and marking their 16th consecutive week of positive inflows, totaling $431 million.
“Since June, multi-asset products have become a favorite among investors who prefer to invest in a diversified basket of assets rather than individual assets,” Butterill noted.
This is a trend that has seen them rise to account for 10% of assets under management at global crypto fund management firms.