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Cryptocurrency investment products (crypto funds) recorded the second consecutive week of outflows totaling US$584 million. In total, withdrawals exceed US$ 1.2 billion. However, Brazil bucked this global trend and, last week, invested US$8.5 million in crypto funds.

By way of comparison, in the same period of time, Canada saw outflows of more than US$109 million, the United States saw withdrawals of more than US$475 million and Germany had outflows of almost US$24 million. Outflows of US$19 million were also recorded in Hong Kong.

Alongside Brazil, only Australia and Switzerland registered investments in crypto funds, of US$800 thousand and US$38.9 million, respectively.

Investments in crypto funds

According to CoinShares’ weekly report, withdrawals from crypto funds may be a reaction to pessimism among investors regarding prospective interest rate cuts by the Federal Reserve this year.

Additionally, the report pointed out that last week also saw the lowest trading volumes on ETPs globally since the approval of spot Bitcoin exchange-traded funds (ETFs) in the US, seeing just $6.9 billion for the week.

As the report pointed out, Bitcoin was the main focus of the outflows, recording US$630 million in withdrawals. However, recent negative sentiment has not caused investors to increase their short positions, with Bitcoin shorts recording $1.2 million in outflows.

Ethereum, in turn, did not escape the negative sentiment, seeing US$58 million in outflows. Meanwhile, a range of altcoins saw inflows following recent price weakness. The most notable were cryptocurrencies Solana, Litecoin, and Polygon at $2.7 million, $1.3 million, and $1 million, respectively.

Finally, CoinShares highlighted that multi-asset products recorded inflows of US$98 million, which suggests that investors saw the weakness in the altcoin market as a buying opportunity.

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