Crypto investment products see third consecutive week of outflows totaling $435 million
Crypto investment products witnessed a further $435 million in net outflows globally last week as incumbent ETF issuers continue to see withdrawals.The outflows are the largest since a record of nearly $1 billion during the third week of March as bitcoin fell from its latest all-time high.
The figure is the largest since a record of nearly $1 billion in outflows was recorded during one week last month as bitcoin corrected after reaching its latest all-time high of $73,836 on March 14.
Weekly crypto asset flows. Images: CoinShares .
“Trading volumes in exchange-traded products fell to $11.8 billion last week compared to $18 billion the prior week, while bitcoin prices fell by 6%,” CoinShares Head of Research James Butterfill added .
BTC -1.77% /USD price chart. Image: The Block/TradingView .
Grayscale’s outflows decelerate but so do inflows from new issuers
Most of the outflows were from the incumbent Grayscale, which converted its Bitcoin Trust product into a spot bitcoin exchange-traded fund in January. Grayscale’s GBTC contributed $454.1 million in outflows last week alone. However, this was the lowest level for nine weeks, Butterfill pointed out.
“While Grayscale’s outflows continue to decelerate, we have also seen a deceleration in inflows from new issuers, which saw only $126 million in inflows last week, compared to $254 million the week prior,” Butterfill added.
BlackRock’s IBIT spot bitcoin ETF witnessed three days of zero flows last week as its 71-day inflow streak — putting it in the top ten ETFs of all time — came to an end. Fidelity’s FBTC and Valkyrie’s BRRR also witnessed their first daily outflows last week.
Overall inflows for the spot bitcoin ETFs have slowed considerably since peaking at a net daily inflow of $1.05 billion on March 12, according to The Block’s data dashboard .
US-based bitcoin products continue to dominate
Regionally, the U.S.-based crypto investment funds continued to dominate, representing $388 million in weekly outflows. However, year-to-date inflows remain at a record $13.6 billion, Butterfill noted. Germany and Canada-based products saw outflows of $16 million and $32 million, respectively, while Switzerland and Brazil bucked the trend, registering $5 million and $4 million worth of inflows.
Bitcoin products witnessed the most outflows last week, totaling $423 million, followed by $38 million from ether-based funds. However, altcoin investment products, such as Solana, Litecoin and Chainlink funds, saw inflows of $4 million, $3 million and $2.8 million, respectively.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
CLARITY Act heads for Senate vote as stablecoins become the new bank-deposit battleground
Shiba Inu eyes bullish reversal as network activity surges 122%, targets $0.000014
BUILDon rallies as holders hit record 87,320 – Can B extend its gains?
Goldman Sachs Hedge Fund Chief: "Zero-Day Options" Suppress U.S. Stock Volatility, Technology and Energy Remain the Best Choices
The S&P 500 has experienced intraday fluctuations of less than 1% for 27 consecutive trading days, marking the longest period of low volatility since the pandemic. Goldman Sachs warns that this "calm" is the result of zero-day options strategies forcibly locking in the market, and once a catalyst emerges, the compressed volatility energy will be released all at once. Meanwhile, expectations for a rate hike in September are rising, market sentiment has dropped to its lowest point of the year, and fiscal sustainability risks loom large—is this pot of heating water going to boil for much longer?
Crypto prices
More
