In a recent turn of events, cryptocurrency investment products have seen a massive outflow of funds. Following a period of substantial inflows totaling $12.3 billion over seven weeks, these products faced an unprecedented withdrawal of $942 million in the past week, setting a new high for outflows. Despite this, new ETFs in the United States experienced an inflow of $1.1 billion, failing to fully counterbalance the notable $2 billion exodus from Grayscale’s offerings.
Resilient Altcoin Investments
Contrastingly, altcoin-focused investment vehicles have fared better, recording net inflows amounting to $16 million. Leading the pack were Polkadot, with $5 million in inflows, followed by Avalanche (AVAX) and Litecoin, attracting $2.9 million and $2 million respectively.
While trading volumes in Exchange-Traded Products (ETPs) remained robust at $28 billion for the week, they showed a decline from the previous week’s figures. Despite the recent price dips, which erased $10 billion from the total assets under management (AuM), the current value still exceeded the peak of the previous cycle, staying above $88 billion.
Global Impact and Market Trends
The trend of outflows extended beyond the United States, with Sweden, Switzerland, Hong Kong, and Germany registering outflows of $37 million, $25 million, $35 million, and $4 million, respectively. In contrast, Brazil and Canada bucked the trend, welcoming inflows of $9 million and $8.4 million respectively.
Bitcoin took the hardest hit, accounting for 96% of the total outflows. A staggering $904 million was withdrawn from Bitcoin investment products. Additionally, products betting against Bitcoin also experienced a modest outflow of $3.7 million. Other major cryptocurrencies such as Ethereum, Solana, and Cardano were not immune either, with outflows of $34 million, $5.6 million, and $3.7 million, respectively.