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"Global Crypto Investment Products Experience Significant Outflows as Market Correction Continues"


 The cryptocurrency market is currently experiencing a notable correction as investors withdrew $584 million from crypto-related investment products last week, according to the latest report from CoinShares. Global trading volumes for crypto exchange-traded products (ETPs) hit their lowest levels since the approval of spot Bitcoin exchange-traded funds (ETFs) by the US Securities and Exchange Commission in January, totaling just $6.9 billion for the week.


This downward trend follows a similar pattern from the previous week, where investors pulled out approximately $600 million, resulting in a total outflow of nearly $1.2 billion over the two-week period. James Butterfill, the head of research at CoinShares, attributed this trend to investor pessimism surrounding the possibility of interest rate cuts by the Federal Reserve (FED) this year.


Bitcoin investment products experienced the most significant outflows, totaling $630 million. In the US, Bitcoin ETPs saw six consecutive days of outflows, primarily from Grayscale Bitcoin ETF and Fidelity’s FBTC. Canada also saw substantial outflows from crypto ETPs, with $109 million withdrawn, followed by Germany and Hong Kong with outflows of $24 million and $19 million, respectively.


On the other hand, Switzerland and Brazil recorded inflows of $39 million and $48.5 million, respectively, helping to offset the overall outflows. Investors with bearish sentiments also withdrew about $1.2 million from short Bitcoin products. Ethereum also joined the outflow trend, seeing its first withdrawals in weeks, totaling approximately $58 million.


Despite the outflows from major digital assets, multi-asset investment products and some altcoins attracted significant inflows. Multi-asset products received over $98 million, while Solana, Litecoin, and Polygon attracted $2.7 million, $1.3 million, and $1 million, respectively. Butterfill noted that these inflows suggest a new investor focus on altcoins and indicate that investors view weakness in the altcoin market as a buying opportunity.


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