Over the past week, crypto investment products noted a mixed performance after recording an inflow of $30 million.
According to the CoinShares report, the products’ weekly trading volume has dropped 50% from the previous week to stand at $7.6 billion. The latest data, according to CoinShares head of research James Butterfill, is the market’s reaction to the macroeconomic situation triggered by speculations that the US Federal Reserve may not cut the interest rate further next month.
Crypto ETF Issuers Flow. | Source: CoinShares
Bitcoin’s Market Influence on Crypto Investment Products
Over the last seven days, Bitcoin (BTC) products have received $42 million in inflows. Nevertheless, there’s been $320 million in withdrawals from these products over the 30 days.
In addition, the performance of these BTC products is a reflection of investors’ bias regarding the world’s largest digital asset. Conversely, the net flows into Ethereum (ETH) products within the same period was $4.2 million.
Thus, Ether products have received about $166 million in total inflows for the month. ETH is becoming more popular among investors, who see it as a dependable asset in the rapidly evolving cryptocurrency market due to its steady performance.
Apart from these top two digital assets, multi-asset crypto investment products also grew considerably, with $21 million in inflows. Other cryptocurrencies, such as XRP, also noted positive momentum, indicating investor interest in diversified cryptocurrency portfolios.
However, not all cryptocurrencies noted positive performance. For example, Solana experienced significant withdrawals, with investors taking out a record $39 million.
This negative trend was reflected in Solana’s 6% price reduction to $141, resulting from the asset’s weakening network fundamentals and a steep decline in memecoin trading.
Shifting Market Shares among ETP Providers
The withdrawal of about $1 million from 21Shares’ Short BTC product represents the second successive week of such withdrawals for crypto investment products. This pattern implies that investors are becoming more confident in BTC’s near-term prospects and are choosing direct investments over hedging strategies.
Crypto Asset Flows. | Source: CoinShares
Meanwhile, well-established competitors like Grayscale, a prominent Ethereum and Bitcoin ETF issuer, are falling behind, noting withdrawals of almost $300 million this past week. Grayscale has recorded over $1 billion in monthly withdrawals, bringing its total assets under control down to $20.5 billion.
On the other hand, more recent entrants like Fidelity’s FBTC and BlackRock iShares are garnering a lot of popularity. With $147 million in inflows announced last week, BlackRock’s ETF now has the biggest assets under management (AUM) in the industry at $21.7 billion. Hence, this change suggests that investors are becoming more interested in new crypto investment options.
