After three consecutive weeks of strong inflows, cryptocurrency investment products saw $147 million in outflows last week, according to crypto investment firm CoinShares.
In its Digital Asset Fund Flows Weekly Report released on Oct. 7, CoinShares highlighted that digital asset products experienced these outflows between Sept. 29 and Oct. 5. This followed nearly $2 billion of inflows in the previous three weeks, including a notable $1.2 billion in just one week (Sept. 22-28).
CoinShares suggested that the outflows were driven by unexpectedly strong economic data, which lowered expectations for significant interest rate cuts in the near future. This shift affected investor sentiment, leading to the withdrawal of funds from crypto products.
Trading volumes for exchange-traded products (ETPs) rose by 15% during the week, although broader crypto market volumes were somewhat lower, according to James Butterfill, head of research at CoinShares.
Summary Review: The recent $147 million outflow from crypto investment products marks a pause after a strong period of inflows, likely influenced by better–than–expected economic data that dampened hopes for rate cuts. Despite the outflows, trading activity in crypto-related investment products remained relatively strong, indicating that while some investors are cautious, interest in the market remains steady. The upcoming weeks may reveal how investors adjust their strategies in response to shifting economic expectations.
Disclaimer: Remember that nothing in this article and everything under the responsibility of Web30 News should be interpreted as financial advice. The information provided is for entertainment and educational purposes only. Investing in cryptocurrency involves inherent risks and potential investors should be aware that capital is at risk and returns are never guaranteed. It is imperative that you conduct thorough research and consult with a qualified financial advisor before making any investment decision.
