Investors Show Caution as Digital Asset Investment Products Record $126 Million in Outflows
Investors in digital asset investment products are showing signs of caution as outflows reached $126 million last week, according to a report from CoinShares. The stalling of upward price momentum in crypto markets has led to hesitancy among investors, with volumes increasing but ETP/ETF activity dropping.
The United States saw the largest outflows of $145 million, while Canada and Switzerland also experienced outflows. On the other hand, investors in Germany took advantage of recent price weakness, resulting in $29 million in inflows.
Bitcoin saw the most significant outflows with $110 million, but still maintained positive month-to-date inflows. Ethereum, on the other hand, experienced $29 million in outflows for the fifth consecutive week.
Altcoins had a good week, with esoteric names like Decentraland, Basic Attention Token, and LIDO seeing inflows. Despite the upcoming Bitcoin halving, sentiment in the crypto ecosystem has pulled back to ‘Greed’ territory from ‘Extreme Greed’ last week.
Analysts predict that the price action post-halving will be volatile, but the consensus is that the trend will be higher in the long term. History shows that the crypto market typically enjoys a healthy bull market lasting six to eighteen months after a halving event.
