Altcoins
Crypto investment products see $1.2 billion outflow in two weeks as investors see ‘weakness’ in Altcoins
Cryptocurrency investment products saw outflows of $584 million over the past week, which when added to the previous week’s figure means investors withdrew around $1.2 billion from these products, although investments in altcoins have increased significantly recently.
According to CoinShares Digital Asset Fund Flow According to the weekly report, these capital outflows could be the result of “investor pessimism about interest rate cuts” that the Federal Reserve could enact later this year.
The report states that investment products offering exposure to Bitcoin saw outflows worth $630 million, while products focused on Ethereum saw outflows of $58.3 million. Products shorting BTC also saw outflows of $1.2 million, while products focused on Cardano saw outflows of $300,000.
In a surprising twist, products focused on multiple cryptocurrencies saw $98 million in inflows in a single week, which CoinShares says suggests “investors saw the weakness in the altcoin market as a “purchasing opportunity”. Year-to-date inflows for these products total $136 million, with the lion’s share of these funds coming in the last week.
These inflows came after the total market capitalization of the cryptocurrency space, excluding Bitcoin, Ethereum and stablecoins, fell from around $600 billion to $475 billion in only a month, amid a significant market slowdown that saw BTC fall to $61,000.
Meanwhile, products offering exposure to Solana ($SOL) saw $2.7 million in inflows, while those offering exposure to Litecoin, a cryptocurrency often referred to as the money to gold of Bitcoin, recorded $1.3 million in inflows.
Those offering exposure to XRP saw $700,000 in inflows, while products focused on Chainlink ($LINK) saw $300,000 in inflows.
As noted, the data showed that long-term Bitcoin holders began selling off holdings they had accumulated throughout the bear market in January, when Bitcoin spot exchange-traded funds (ETFs) were listed in the USA. However, long-term Ethereum holders are still accumulating.
Featured image via Unsplash.