Institutional Crypto Investors Withdraw $147 Million Amid Strong Economic Data

Institutional crypto investors pulled out around $147 million from crypto products last week, according to CoinShares. This trend seems to stem from stronger-than-expected economic data. Such data has lowered the chances of significant interest rate cuts.

In its latest report on digital asset fund flows, CoinShares noted that the total outflows from digital asset investment products reached $147 million. The report highlights that recent economic figures have shifted investor sentiment. Trading volumes in exchange-traded products (ETPs) saw a slight rise of 15%, hitting $10 million for the week. However, the broader crypto market experienced a decline.

Regionally, the United States led the outflows with $209 million. Germany and Hong Kong followed with losses of $8.3 million and $7.3 million, respectively. On the flip side, Canada and Switzerland saw inflows of $43 million and $35 million.

Bitcoin (BTC) remained in the spotlight, suffering outflows of $159 million. Interestingly, short-BTC products managed to attract inflows of $2.8 million. Ethereum (ETH) also faced outflows, but one segment of digital asset investment products continued to thrive.

Multi-asset investment products, which include multiple cryptocurrencies, recorded inflows of $29 million. This marks the sixteenth consecutive week of positive inflows. Over this period, total inflows have reached $431 million, representing 10% of assets under management. Since June, these multi-asset products have gained traction among investors looking for a diversified portfolio rather than focusing on individual cryptocurrencies.