Key Points
- Crypto investment products saw net outflows of $126 million last week due to market volatility.
- Despite trading volumes increasing, ETF/ETP activity fell, indicating investor caution.
The last week saw net outflows from cryptocurrency investment products, amidst a volatile market. The total outflows amounted to $126 million, according to data from CoinShares.
Regional Outflows and Inflows
The United States experienced the most significant outflows, totaling a massive $145 million. Canada and Switzerland followed with outflows of $6 million and $5.7 million respectively. Conversely, Germany took advantage of the market situation, registering net inflows of $1.7 million.
Spot Bitcoin ETFs also experienced significant volatility over the past month. Last week, the total inflows into the nine Bitcoin ETFs registered in the US were $572 million, not including the GBTC flows.
The Grayscale Bitcoin ETF GBTC saw more than $767 million in outflows. At the same time, BlackRock continued its steady approach, with its IBIT Bitcoin ETF’s assets under management exceeding $15 billion. This has significantly reduced the gap in Bitcoin reserves between BlackRock and Grayscale, suggesting that a substantial portion of the GBTC outflows may have been redirected towards BlackRock.
Altcoins and Market Sentiment
With a muted market sentiment around Bitcoin, altcoins also saw net outflows last week. Ethereum (ETH), the world’s second-largest cryptocurrency, experienced net negative outflows of $29 million.
Despite Solana seeing $3.6 million in outflows, altcoins had a generally positive week. Lesser-known cryptocurrencies, including Decentraland, Basic Attention Token, and LIDO, saw inflows of $4.9 million, $2.9 million, and $1.8 million respectively.
Over the past weekend, the wider cryptocurrency market, including Bitcoin, experienced significant turbulence due to escalating geopolitical tensions and the Iran-Israel conflict. However, investors seem to have chosen to overlook these issues, focusing instead on the upcoming Bitcoin halving event.
The price of Bitcoin has rebounded to above $66,000, while altcoins have seen gains of between 8-15% in the last 24 hours.
