Crypto Investment Products Registered $126M in Outflows Last Week, What’s Next?

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Last week, investors pulled money out of cryptocurrency investment funds more than they put in, amounting to a withdrawal of approximately $126 million. This came as market sentiment towards Bitcoin and other digital currencies remained uncertain, with prices fluctuating significantly. (Data from CoinShares)

Despite an increase in trading volumes from $17 billion to $22 billion weekly, the amount of ETF/ETP activity decreased compared to the market as a whole. This indicates that investors were taking a cautious approach before the upcoming Bitcoin halving event.

In terms of regional differences, the US experienced the greatest outflow of funds amounting to an impressive $145 million. Meanwhile, Canada and Switzerland saw smaller outflows with approximately $6 million and $5.7 million respectively. Conversely, investors from Germany showed a net inflow of around $1.7 million.

The inflows into Bitcoin ETFs in the United States have been unstable over the past month. In the previous week alone, these ETFs recorded a total inflow of approximately $572 million, not including the contributions to Grayscale Bitcoin Trust (GBTC).

This week, a total of $572 million flowed into the nine newly established Bitcoin ETFs, including GBTC, marking the poorest inflow we’ve seen so far.
— Joe Consorti ⚡ (@JoeConsorti) April 13, 2024

While Grayscale’s Bitcoin ETF, GBTC, experienced significant redemptions totaling over $767 million, BlackRock’s IBIT Bitcoin ETF saw an increase in assets managed, surpassing $15 billion. As a result, the difference in Bitcoin holdings between the two funds has diminished noticeably. It’s plausible that a substantial amount of outflows from GBTC have been transferred to BlackRock.

Altcoins See Net Outflows

In a quiet market atmosphere for Bitcoin, Ethereum (the world’s second largest cryptocurrency) experienced a total withdrawal of $29 million during the last week.

Last week, Solana recorded a total outflow of approximately $3.6 million. In contrast, the altcoin market as a whole experienced a positive trend with several lesser-known coins attracting investments. Decentraland, Basic Attention Token, and LIDO were among the gainers, recording inflows of $4.9 million, $2.9 million, and $1.8 million respectively, according to CoinShares data.

During the past weekend, Bitcoin and other cryptocurrencies experienced significant volatility due to increasing geopolitical conflicts, specifically between Iran and Israel. Despite these tensions, investors are currently focusing on the upcoming Bitcoin halving event and choosing to overlook the current instability in the market.

In the past day, Bitcoin’s price has rebounded, surpassing $66,000 again. Meanwhile, various altcoins experienced growth ranging from 8% to 15%.

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2024-04-15 17:37