Crypto investment products saw outflows of $528 million, ending four weeks of inflows, as per CoinShares’ latest report.
James Butterfill, head of research at CoinShares, attributed the outflows to concerns about a potential US recession, geopolitical issues, and a market liquidation that impacted major cryptocurrencies.
Exchange-traded products (ETPs) had a low trading volume of $14.8 billion, just 25% of the total market. The recent correction reduced ETP assets under management by $10 billion to $89.6 billion.
Bearish Sentiments Arise
Bearish sentiments emerged towards Bitcoin, with outflows of $400 million last week, the first in five weeks. Conversely, short-Bitcoin products saw inflows of $1.8 million, indicating a shift in sentiment towards betting against BTC’s rise.
US Bitcoin ETFs had net outflows of over $80 million, with Grayscale’s Bitcoin Trust (GBTC), Fidelity’s FBTC, and Ark 21 Shares’ ARKB experiencing significant outflows.
Ethereum also saw outflows totaling $146 million, bringing the net outflows from the asset to $430 million since the launch of US spot Ethereum ETFs. European ETPs also had minimal outflows.
Notably, Grayscale’s Ethereum Trust (ETHE) recorded $603 million in outflows, outweighing the $430 million inflow from other Ethereum ETF issuers.
Other cryptos like Cardano and BNB had minimal ETP activity, while Solana saw outflows of $2.8 million.
The US had $531 million in outflows, with Germany and Hong Kong seeing $12 million and $27 million outflows. However, Canadian and Swiss investors took advantage of the market dip with inflows of $17 million and $28 million, respectively.
