Investor Caution Persists as Digital Asset Investment Products See $126M in Outflows

Investor hesitancy continues as digital asset investment products see outflows of $126 million, signaling caution in a market with stalled price momentum. While trading volumes have increased slightly, activity in exchange-traded products (ETPs) and exchange-traded funds (ETFs) has declined. Bitcoin experienced outflows of $110 million, but still maintained positive inflows of $555 million for the month. Ethereum suffered the most with outflows of $29 million, while altcoins such as Decentraland, Basic Attention Token, and LIDO saw inflows. Investor sentiment varies across regions, with the United States recording the largest outflows and Germany injecting $29 million in inflows. Despite the cautious market conditions, investors have poured a total of $646 million into crypto products last week, surpassing the previous year’s total. Bitcoin surged by 2.8% to a trading value above $66,500, while ether advanced to $3,240 following the approval of spot crypto ETFs in Hong Kong. There is also speculation of a notable outflow of Bitcoin from miners after the upcoming halving event, potentially affecting Bitcoin’s price in the months to come.