The recent market downturn has led to the first negative weekly flow in crypto investment products, including Bitcoin and other assets. CoinShares, a prominent asset manager, revealed this development in its latest report on institutional investments in crypto-based products. The report states that a record weekly outflow of $942 million was recorded last week, breaking a seven-week streak of inflows totaling $12.3 billion.
CoinShares noted that despite trading volumes remaining high at $28 billion for the week, they were two-thirds lower than the previous week. The recent price correction in the crypto market resulted in a $10 billion decrease in total assets under management (AuM). However, AuM still stands above previous cycle highs at $88 billion.
Analysts at CoinShares suggest that investor hesitancy towards crypto investment products is due to the recent market downturn. They specifically attributed the lower inflows into new ETFs in the U.S. to the market-wide corrections. U.S. ETFs saw $1.1 billion in inflows last week, but it failed to offset the substantial $2 billion outflows from the market, largely influenced by Grayscale Investment’s GBTC.
Negative sentiment towards crypto-based investment vehicles was not limited to the U.S. market. Countries such as Switzerland, Sweden, Hong Kong, and Germany experienced outflows of $25 million, $37 million, $35 million, and $4 million respectively. However, Canada and Brazil saw positive flows totaling $8.4 million and $9 million respectively.
Bitcoin witnessed the most significant outflows, with 96% of the flows directed towards it, totaling $904 million. Bitcoin shorts also saw minor outflows of $3.7 million. Ethereum, Solana, and Cardano faced challenges, experiencing outflows of $34 million, $5.6 million, and $3.7 million respectively. On the other hand, the rest of the altcoin space performed well, with net inflows reaching $16 million. Notable performers included Avalanche, Polkadot, and Litecoin.
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