Crypto Funds Pause Three-Week Positive Streak with $147M Outflows

Crypto investment products end their three-week positive inflow streak with โ€œminorโ€ outflows totaling $147 million.

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  • Crypto funds have posted outflows for the first time in three weeks.
  • Bitcoin investment products bled the most.
  • On the other hand, multi-asset funds extended their positive streak to a 16th week.

Global digital asset investment products witnessed tens of millions in net outflows in the week ended on October 4, ending their three-week streak of positive flows.

The disrupted positive streak was a reaction to continued expectations of favorable monetary policy in the U.S. and associated upward price momentum in the crypto market, which saw the Bitcoin price tease north of $66,000 on September 27.

Crypto Funds See Mild Outflows

According to a CoinShares report on October 7, crypto investment products at various asset managers globally saw a combined net outflow of $147 million last week, with Bitcoin funds bleeding the most.

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Bitcoin investment products logged outflows totaling $159 million as short-bitcoin attracted $2.8 million from investors. An outflow trend was also seen in Ethereum, with $29 million leaving the funds barely a week after breaking a five-week negative spell.

CoinShares head of research James Butterfill attributed the โ€œminorโ€ outflows to weaker investor sentiment, which was likely driven by higher-than-expected economic data last week and dwindling possibilities for significant rate cuts.

โ€œTrading volumes were up marginally by 15% to US$10 for the week in ETP investment products, while we have seen lower volumes in broader crypto markets,โ€ Butterfill said in the report.

Notably, multi-asset investment products extended their inflow streak to a 16th week, attracting $29 million in net inflows. The funds have pulled a combined $431 million during those 16 weeks, representing 10% of assets under management (AUM).

Stay updated on Metaplanetโ€™s latest Bitcoin acquisition:
Metaplanet Pushes Bitcoin Holdings to $40M After Latest Acquisition

Read about Bitcoinโ€™s supply on exchanges hitting a six-year low:
Bitcoinโ€™s Exchange Supply Falls as โ€˜Uptoberโ€™ Builds Strength

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Brian Danga

Brian Danga is a crypto reporter at DailyCoin covering breaking news. Brian has minor holdings in Bitcoin and Ethereum.

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