Crypto investment outflows reach 3-week streak with $435m

While Bitcoin fell more than 5% last week, crypto investors continued to withdraw capital from virtual asset vehicles such as spot exchange-traded funds.

According to CoinShares, outflows from digital asset investment products totaled $435 million, representing a 6% decline in ETF trading volume. Activity fell from $18 billion two weeks ago to $11.8 billion last week.

The lion’s share of outflows were Bitcoin (BTC) and Ethereum (ETH), with $423 million and $38 million, respectively. The bulk of this pattern, which is primarily in BTC, is recorded in the US and is mostly found in Grayscale’s converted GBTC ETF.

BTC weekly chart | Source: CoinMarketCap

Grayscale’s spot Bitcoin ETF lost $440 million in outflows. This constituted the smallest weekly GBTC withdrawals since March, while inflows into new spot BTC ETFs also decreased. While Bitcoin prices have stagnated, just $126 million in cumulative capital has flowed into 10 new spot BTC ETFs offered by firms like BlackRock and Fidelity.

As Ethereum outflows correlate with BTC sentiment, crypto altcoin products have garnered investment from asset managers and investors.

“A wide range of altcoins have seen entry, with investors choosing multi-coin investment products and Solana, Litecoin and Chainlink being regular favourites.”

CoinShares analysts

This altcoin trailed investment products at over $9 million, with Solana (SOL) taking the lead with an inflow of $4 million. Litecoin (LTC) followed with $3 million, while Chainlink (LINK) followed with $2.8 million.