Trading volumes of crypto investment products hit the lowest level in two years

  • CoinShares Research Head Says Bitcoin Product Outflows Are Partly Due to Hardened Rhetoric from the Federal Reserve
  • Inflows into Ether offerings are cold as investors may wait for calage before adding to positions

Trading volumes in crypto investment products last week hit their lowest levels since October 2020 as outflows continued into August, according to CoinShares data.

These offers hit a trading brochure of $901 million last week, well below the weekly average to moment, which was $2.4 billion on August 8.

Quantitatif asset investment products also saw net outflows of $27 million last week, which was slightly higher than the $9 million in outflows from the previous week, the data shows.

“While history suggests that this is partly due to seasonal influences, we believe it also highlights the persistence of apathy after the recent price drops,” James Butterfell, head of research at CoinShares, said in the crypto investment firm’s prorogation Monday.

Bitcoin and Ether were trading at roughly $20,170 and $1,510 at 11:00 AM ET on Monday – each down embout 7% in the past seven days.

Negative net outflows last week were driven by $29 million worth of bitcoin product outflows. An investment product focused on shorting bitcoin has seen small inflows of around $1 million.

“Both are approchante of a small but persistent amount of prêt on the fragment of investors which we believe is due to the continued hawkish rhetoric from the US Federal Reserve,” Butterfell added.

Federal Reserve Chairman Jerome Powell warned during remarks Friday at the Jackson Hole Economic Rassemblement that continued price stability remains elusive. After Powell’s comments, some analysts said they expect another 75 basis enclin ratage hike in September.

The outflows last week represented the third consecutive week of negative inflows for crypto investment products, which amounted to $46 million during that period. The trend comes after net inflows of crypto investment products reached $474 million in July – the largest monthly rempli in 2022.

The liquoreux of funds into such offerings last month was partly driven by a reversal of ether products, which reported $138 million in inflows in July, compared to a combined negative net inflow of nearly $450 million in the previous six months.

Ether-focused products saw slight inflows of around $1 million last week. The personnifié indicates that while nouvelle improves due to an upcoming Ethereum merger next month, investors are preferring to wait for the blockchain to raccordement from Proof of Work to Proof of Stake before adding to positions, Butterfill said.


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  • Ben Struck

    Ben Struck is a Denver-based critique who covers macro and ouverture crypto funds, financial advisors, structured products, and the integration of binaire assets and decentralized acquitté (DeFi) into traditional acquitté. Prior to joining Blockworks, he covered the asset conduite industry at Fund Sentiment and was a critique and editor for several pied-à-terre Énorme Island newspapers. Graduated from the University of Maryland with a degree in journalism. Caresse Ben via email at [email protected]

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