Digital Asset Investment Products Has USD 147 Million Outflow
Digital asset investment products recorded outflows of $ 147 million last week as investors became increasingly cautious in the face of strong economic data.
According to CoinShares’ report on Monday, stronger-than-expected economic data dampened hopes for interest rate cuts, negatively impacting market sentiment.
Despite investors’ cautious approach, trading volumes of exchange-traded products (ETPs) increased by 15% to $10 billion. However, the trading volume of the crypto market in general remained low.
Canada and Switzerland Leading in terms of Inflows
Investment trends varied geographically. Canada and Switzerland led the way with inflows of $43 million and $35 million, respectively.
In contrast, the US, Germany and Hong Kong recorded significant outflows. The US saw outflows of $209 million, Germany $8.3 million and Hong Kong $7.3 million.
However, short Bitcoin products saw an inflow of $ 2.8 million.
Ethereum, which followed the negative trend, recorded an outflow of $ 29 million as interest in the asset decreased.
On the other hand, investment products based on multiple assets continued their inflow series. And recorded an inflow of $ 29 million. Thus, these products have recorded inflows for 16 consecutive weeks.
These products have seen inflows of $431 million since June. This corresponds to 10 per cent of assets under management and shows that investors are diversifying their portfolios with various digital assets.
October Expectations Strengthen Again
In a recent note, QCP Capital said that expectations for October have strengthened again. Bitcoin stabilised near the levels seen on Monday last week.
The US non-farm employment data (NFP) above expectations and the excitement created by HBO’s Bitcoin documentary strengthened the support level around $ 60,000.
Even interest in Len Sassaman-inspired meme coins has increased.
Despite the volatility seen last week, option entries suggest that the fourth quarter will be good. Open positions in December BTC call spreads targeting the $75,000 and $95,000 levels further strengthen expectations for October.
Expectations of further interest rate cuts and Bitcoin’s strong correlation with stocks have raised hopes that BTC will perform strongly in October.
However, this week, eyes will be on the US Consumer Price Index (CPI) data to be announced on Thursday.
Investors will scrutinise the report carefully to see if there are any signs of inflationary pressure following the recent US income and employment data.
While the US Federal Reserve’s (FED) rate cut expectations have fallen from 50 basis points to 25 basis points in just one week, the CPI figures to be released on Thursday may affect the bank’s policy.
QCP stated last week that interest in December BTC call spreads has increased.
The company said the potential strategy is the zero-cost principal-protected Sharkfin, which matures on 27 December 2024 and has a $75,000 strike, $90,000 barrier price, offering a maximum annual payout of 90% if Bitcoin’s price remains just below $90,000 at maturity.