Crypto Products See $812M Outflow, But Annual Inflows Remain Robust

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A wave of negative sentiment, isolated primarily to the US, led to $812 million in outflows from crypto investment products last week.

The shift was triggered by easing expectations for Federal Reserve rate cuts following positive economic data. However, analysts suggest the downturn may be short-lived.

“Importantly, there was no commensurate increase in short-bitcoin investment product demand, suggesting that the negative sentiment was likely low-conviction and will likely prove temporary,” said James Butterfill of CoinShares.

The data supports a broader positive trend, with year-to-date inflows holding strong at $39.6 billion, keeping pace with last year’s record.