Digital asset investment products' trading volume hits new two-year low - report

Digital asset investment products saw trading volumes reach a fresh two-year low of $677M for the week ending December 9, CoinShares reported Monday, as market participants continue to be wary of the fallout from crypto exchange FTX ( FTT-USD ) as well as growing recession risks. On a brighter note, digital asset funds experienced minor inflows totaling $8.8M, and outflows were seen from the most short investment products for the second week in a row, CoinShares noted, signaling some positive sentiment despite the looming bear market. For bitcoin ( BTC-USD ), sentiment continued to steadily improve since mid-November with inflows since then currently standing at $108M, representing 2.1% of total assets under management, according to the report. For the week, bitcoin saw inflows of $17M, while ethereum ( ETH-USD ) saw outflows of $2.4M for the fourth straight week. "This supportive sentiment [for BTC] is in-line with deteriorating sentiment for the US Dollar, highlighting their high inverse relationship," CoinShares noted. It's not looking so great for blockchain equity exchange-traded products, though, as outflows totaled $6.6M last week. That's "likely due to investor concerns over the crypto mining sector, which continues to suffer from low crypto prices, rising debt interest costs and rising energy prices," CoinShares explained. Blockchain equity ETPs: Global X Blockchain ( BKCH ), Bitwise Crypto Industry Innovators ( BITQ ), VanEck Vectors Digital Transformation ( DAPP ), Fidelity Crypto Industry and Digital Payments ( FDIG ), Fidelity Metaverse ( FMET ), Horizons Big Data & Hardware Index ( HBGD:CA ), iShares Blockchain and Tech ( IBLC ), Defiance Digital Revolution ( NFTZ ), Invesco Alerian Galaxy Crypto Economy ( SATO ), and Valkyrie Bitcoin Miners ( WGMI ). Take a look at why Seeking Alpha contributor Knox Ridley thinks bitcoin will rally again .