Digital asset investment products have experienced a second consecutive week of outflows, with a total of $206 million leaving the market. Bitcoin investment products saw outflows of $192 million, while Ethereum faced outflows of $34 million for the sixth week in a row. Despite this, the report noted that few investors viewed this as an opportunity for short-selling, with short-Bitcoin strategies experiencing minor outflows. Trading volumes in Exchange Traded Products (ETPs) also saw a slight dip, reaching $18 billion, with ETPs accounting for a smaller percentage of total bitcoin volumes at 28%.
The negative sentiment surrounding digital asset investment products was primarily observed in US ETFs, which saw outflows of $244 million. However, newly issued ETFs continued to receive inflows, albeit at lower levels compared to previous weeks. In contrast, Canada and Switzerland experienced inflows of $30 million and $8 million, respectively, while Germany saw minor outflows of $8 million. Multi-asset products saw improved sentiment, attracting inflows of $9 million during the previous week. Additionally, Litecoin and Chainlink saw inflows of $3.2 million and $1.7 million, respectively.
In the realm of blockchain equities, concerns over the impact of halving continued to weigh on investor sentiment, leading to the eleventh consecutive week of outflows amounting to $9 million. Despite these challenges, Bitcoin has surged after the halving event, currently trading at $66,266, up by almost 2% over the past day. While some analysts have cautioned about a potential further price slide following the event, the overall consensus remains bullish in the long term. Bitwise noted that following past halving events in 2012, 2016, and 2020, Bitcoin experienced exponential gains in the year after the event, with prices surging significantly.
Some analysts, including JPMorgan, have warned of a potential further price drop following the halving event, while others, like Crypto.com CEO Kris Marszalek, remain bullish on Bitcoin’s long-term outlook. Marszalek noted that there may be some selling pressure leading up to the event, but the overall trajectory is positive. Bitwise observed that while there may be a modest drop in price in the month following the halving, historical data shows that Bitcoin tends to experience significant gains in the year after the event. This pattern has been observed consistently after previous halving events, with prices surging in the months and years following the reductions in block rewards.
