Crypto investment products are currently in a tough spot, as shown by inflow and outflow data. The cryptocurrency market is known for its volatile market cycles of ups and downs. Investment products are currently struggling and confidence in the sector appears to be wavering. Cryptocurrency funds have been outflowing for the third week in a row, with investors withdrawing $435 million from digital asset funds last week, according to data from CoinShares. The recent increase in outflows highlights the deterioration in investor sentiment towards some digital assets following the bull market earlier this year.
Cryptocurrency withdrawal for 3 consecutive weeks
coinshares Recent weekly reports A survey of digital asset flows reveals the current sentiment of institutional investors. Investment funds saw outflows of $435 million last week, the largest outflow since March, the report said. This is on top of $206 million and his $126 million. past 2 weeks. Unsurprisingly, the majority of spills were from: bitcoin fund. Of the total outflow of $435 million, $423 million came from Bitcoin funds. Notably, the majority of Bitcoin outflows ($328 million) came from the US Spot Bitcoin Exchange Traded Fund (ETF).
Examining previous crypto fund flow data since the beginning of the year shows that the majority of inflows recorded in January, February, and March were spot. Bitcoin ETF. These ETFs recorded so many inflows that the investment product was able to post its best year ever in less than three months.
However, inflows to these ETFs have declined over the past few weeks, with the largest digital asset currently unable to attract inflows amid low interest rates in the US market. In particular, Grayscale's GBTC continued to be withdrawn, recording an outflow of $440 million. At the same time, other ETFs were unable to raise capital this week to offset these withdrawals. For example, BlackRock's IBIT failed to record any inflows for three consecutive days last week, making it 71 days without any inflows. The influx continues until the end.
Ethereum, the king of altcoins, also witnessed outflows of $38.4 million last week to offset inflows into other altcoins. According to inflow data, investors poured $6.9 million worth of inflows into multicoin investment products. Solana, Litecoin, XRP, Cardano, and Polkadot saw inflows of $4.1 million, $3.1 million, $400,000, $400,000, and $500,000, respectively. Bitcoin short products also saw inflows of $1.3 million, providing a glimpse of investor sentiment.
What's next?
In the fast-moving crypto industry, investor sentiment can change rapidly, and the direction of crypto capital flows could become clearer in the coming weeks. 6 Spot Bitcoin and Ether Exchange Traded Funds (ETFs) is set to start Its entry into the Asian market has been long anticipated and will take place today, April 30th, in Hong Kong. expected to exceed A first-day inflow record set by its U.S. counterpart.
Total market cap drops amid outflows | Crypto total market cap from Tradingview.com
Featured image from StormGain, chart from Tradingview.com
