Investors have pulled approximately $206 million from cryptocurrency investment products over the past week, marking a continuation of the recent trend influenced by rising interest rates and geopolitical instability. This data comes from CoinShares, indicating a significant shift in investor sentiment towards digital assets.
The primary outflows were from U.S. ETFs and various financial instruments linked to Bitcoin (BTC), signaling a cautious stance among investors. Despite a decline in global ETP trading volumes, which fell from $21 billion to $18 billion, Bitcoin’s overall trading activity showed resilience, maintaining an upward trajectory.
Previously, ETFs accounted for 55% of all Bitcoin trades. However, this percentage has significantly dropped to 28% over the last month, influenced by macroeconomic factors. This shift underscores the market’s reaction to global economic changes and investor uncertainty.
Investor Sentiment and Asset Performance
U.S. ETFs experienced a sharp decrease, losing $244 million, while Bitcoin itself saw over $192 million in outflows. These figures partly reflect the impact of Grayscale GBTC liquidations. Interestingly, despite the market downturn, there has not been a significant move towards short positions or products designed to capitalize on declining prices. Short-Bitcoin funds recorded a modest $300,000 in outflows.
Ethereum (ETH) also continued its downward trend, marking six consecutive weeks of outflows, totaling $34 million. Over the past week, Ethereum’s price has remained relatively stable with only a minor 0.30% fluctuation, according to CoinMarketCap.
Additionally, blockchain equities have not been spared, suffering $9 million in outflows. This marks the 11th consecutive week where crypto investors have shown dwindling confidence in blockchain-focused stocks. Analysts from CoinShares highlight the growing concerns among investors about the potential impacts of the upcoming Bitcoin halving on BTC mining operations, suggesting a cautious approach to the sector moving forward.