$435 Million in Crypto Investments Flow Out for Third Consecutive Week
Crypto investors continued to withdraw capital from virtual asset vehicles, such as spot exchange-traded funds, as Bitcoin experienced a more than 5% decline last week. CoinShares reported that outflows from digital asset investment products totaled $435 million, coinciding with a 6% drop in ETF trading volume. The activity decreased from over $18 billion two weeks ago to $11.8 billion last week.
The majority of the withdrawals were seen in Bitcoin (BTC) and Ethereum (ETH), with $423 million and $38 million leaving the market, respectively. The bulk of these withdrawals, particularly in BTC, were observed in the United States and mostly through Grayscale’s converted GBTC ETF.
Grayscale’s spot Bitcoin ETF experienced a loss of $440 million in outflows, marking the lowest weekly withdrawals for GBTC since March. At the same time, inflows into new spot BTC ETFs also declined. As Bitcoin prices stagnated, only $126 million in cumulative capital flowed into 10 new spot BTC ETFs offered by firms like BlackRock and Fidelity.
As Ethereum outflows were correlated with BTC sentiment, asset managers and investors turned their attention to crypto altcoin products. These altcoin investment products received over $9 million in investments, with Solana (SOL) leading the way with $4 million in inflows. Litecoin (LTC) followed with $3 million, and Chainlink (LINK) attracted $2.8 million.
Overall, the recent market trends indicate a shift in investor sentiment as they navigate the volatility of the crypto market.
