A new report from Coinshares indicates a decline in investor enthusiasm for digital asset investment products. Outflows totaled $206 million for the second consecutive week, as evidenced by a decrease in trading volumes for Exchange Traded Products (ETPs) to $18 billion. This may reflect a shift in sentiment among ETP and ETF investors, possibly influenced by expectations of prolonged high interest rates by the FED. The negative sentiment is primarily concentrated in U.S. ETFs, with $244 million in outflows. Established ETFs are facing the brunt of this trend, while newly launched ones continue to see inflows, albeit at a reduced pace. Canada and Switzerland present a different picture, with inflows of $30 million and $8 million, respectively.
Bitcoin outflows reached $192 million, but notably, short-selling activity did not increase significantly, with short-Bitcoin products experiencing $0.3 million in outflows. This suggests investors are hesitant to bet against Bitcoin despite the recent price decline. Ethereum experienced its sixth consecutive week of outflows, amounting to $34 million. However, multi-asset investment products showed a positive trend, with inflows of $9 million last week. Litecoin and Chainlink defied the overall trend with inflows of $3.2 million and $1.7 million, respectively.
The report also highlights concerns surrounding the upcoming Bitcoin halving. Blockchain equities faced their eleventh consecutive week of outflows, totaling $9 million. This reflects investor apprehension about the potential impact of the halving on mining company profitability.
