Last week, crypto funds saw a big shift with $147 million flowing out, ending a three-week streak of money coming in. This change is tied to some bigger economic trends.
Where Did the Money Go?
- Bitcoin: Bitcoin funds lost the most, with $159 million flowing out. Some investors are even betting on Bitcoin prices going down further.
- Ethereum: Ethereum funds also saw money flowing out, continuing a trend that started a few weeks ago. Investors seem to be losing confidence in Ethereum’s performance.
- Multi-Asset Funds:
These funds, which invest in a mix of cryptocurrencies, bucked the trend and saw $29.4 million flow in. This is the 16th week in a row of positive flows for these funds. Investors seem to like the diversification these funds offer.
What’s Driving the Outflow?
The main reason for the shift is stronger-than-expected economic data. This has led to less optimism about interest rate cuts, which could impact the crypto market.
Other factors:
- Trading volume in crypto exchange-traded products (ETPs) was up slightly, but overall crypto market volume was down.
Overall, it seems like investors are getting a little cautious about crypto, at least for now.
