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Digital asset investment products saw a second consecutive week of outflows totaling US$584 million, reducing the total market by US$1.2 billion. This trend is believed to be driven by investor pessimism regarding potential interest rate cuts by the Federal Reserve this year.
<a href="https://blockchainreporter.net/price-prediction/bitcoin-price-prediction/" data-type="post" data-id="64778" rel="noopener noreferrer nofollow">Bitcoin</a> was the primary focus of these outflows, with US$630 million being withdrawn. Despite the negative sentiment, investors did not increase their short positions on Bitcoin, as evidenced by US$1.2 million in outflows from short *BTC* positions. *ETH* also faced negative sentiment, experiencing US$58 million in outflows.
<a href="https://blog.coinshares.com/volume-188-digital-asset-fund-flows-weekly-report-2582269d7257" target="_blank" rel="noopener noreferrer nofollow">According to the Coinshare’s report</a>, the United States saw the largest outflows, amounting to US$475 million. Canada followed with significant outflows of US$109 million. Germany and Hong Kong also experienced outflows of US$24 million and US$19 million, respectively. In contrast, Switzerland and Brazil saw inflows, receiving US$39 million and US$48.5 million, respectively.
<h2 class="wp-block-heading" id="altcoins-and-multi-asset-products-attract-inflows">Altcoins and Multi-Asset Products Attract Inflows</h2>
Despite the overall negative trend, some altcoins attracted inflows. Solana, Litecoin, and Polygon saw inflows of US$2.7 million, US$1.3 million, and US$1 million, respectively. Multi-asset products also saw US$98 million in inflows, suggesting that investors viewed the weakness in the altcoin market as a buying opportunity.
Last week recorded the lowest trading volumes on Exchange Traded Products (ETPs) globally since US ETFs were launched in January, with just US$6.9 billion traded for the week. This reflects a broader trend of reduced trading activity amidst ongoing market uncertainties.
The recent outflows from digital asset investment products highlight a significant market correction driven by investor concerns over potential interest rate changes by the Federal Reserve. While Bitcoin and Ethereum led the outflows, certain altcoins and multi-asset products saw inflows, indicating selective investor confidence in specific market segments.

Digital Asset Investment Products Experience Significant Outflows Amidst Investor Pessimism

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