Bitcoin-based funds saw significant outflows globally, particularly in the US ($209M), Germany ($8.3M), and Hong Kong ($7.3M).
As per the latest CoinShares report, cryptocurrency investment products saw $147 million in outflows last week thereby ending the $2 billion three-week net inflow streak. This happened as Bitcoin and altcoins underperformed to everyone’s expectations of a strong beginning of October 2024.
On the other hand, the US jobs data release on Friday turned out to be stronger than expected. As a result, the chances of another 50 bps rate cut by the Fed have dropped following it.
In the Monday report, CoinShares Head of Research James Butterfill said:
“Higher than expected economic data last week, reducing the probabilities for significant rate cuts are the likely reason for the weaker sentiment amongst investors”.
Global Bitcoin-based funds saw net outflows of $159 million while the short-bitcoin investment products also saw $2.8 million in net inflows. On the other hand, Bitcoin funds in the US, Germany, and Hong Kong also dominated negative flows, losing more than $209 million, $8.3 million and $7.3 million, respectively. However, the Bitcoin funds based in Canada and Switzerland proved to be outperforming netting inflows of $43 million and $34.9 million respectively.
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Photo: CoinShares
- Despite the lower volumes registered in the broader crypto market, the trading volumes for global crypto investment products surged by 15% to over $10 billion last week. Bitcoin is currently trading at $63,595, reflecting a 2.6% gain in the past 24 hours. Last week, the leading cryptocurrency briefly dropped 8.5% to a low of around $60,000 before rebounding. Despite the recent volatility, Bitcoin is still up 46.6% year-to-date.
Multi-Asset Investment Products See Net Inflows
By the fourth week of September, the Ethereum-based investment products just managed to break the trend of negative inflows and had finally turned positive. However, in the first week of October, the trend turned negative once again with outflows of outflows of $28.9 million.
Multi-asset investment products, which provide exposure to multiple cryptocurrencies, defied the broader trend by recording net inflows of $29.4 million. This marks the 16th consecutive week of positive flows, bringing the total to $431 million. CoinShares Head of Research James Butterfill said:
“Since June, multi-asset products have been a favorite among investors who prefer to invest in a diversified basket of assets rather than individual ones”.
This trend has led multi-asset products to account for 10% of assets under management at global cryptocurrency fund managers.
On Monday, Bitcoin and altcoins registered strong recovery looking forward to the US CPI data release ahead this week. This comes as a major relief and analysts expect the BTC price to hit new all-time highs by the month’s end.
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