Bitcoin and other crypto investment products have experienced a third consecutive week of negative flow, resulting in a significant crash in trading volume of $6.2 billion. CoinShares, a digital asset manager, highlighted this development in its latest weekly report on fund flow in the crypto market. The report revealed that last week saw the largest outflow since March, with $435 million leaving the market. Additionally, the volume of crypto exchange-traded products (ETPs) plummeted to $11.8 billion, a $6.2 billion decrease from the previous week’s record of $18 billion.
The CoinShares report emphasized that Bitcoin took the biggest hit, losing 6% of its value due to the decline in ETP trading volume and negative inflow. Interestingly, the outflows were more significant for Bitcoin compared to other crypto assets, with $432 million leaving Bitcoin investment products alone. On the other hand, Ethereum-based investments experienced lower negative flows of $38 million.
Despite the overall negative trend, a variety of altcoins saw inflows as investors opted for multi-coin investment products. This resulted in $7 million in inflows, with Solana (SOL), Litecoin (LTC), and Chainlink (LINK) remaining popular choices and attracting inflows of $4 million, $3 million, and $2.8 million, respectively.
In terms of regional fund flow, the majority of outflows from crypto investment products last week were from the Bitcoin ETF market in the United States. The U.S. spot ETF market experienced a drain of $388 million, primarily influenced by Grayscale Bitcoin Trust (GBTC), which alone recorded a substantial outflow of $440 million. However, this was the lowest inflow in the past nine weeks for GBTC.
While Grayscale’s negative flow trend is gradually declining, other ETF issuers are also experiencing a decrease in inflow. For instance, last week saw an influx of $126 million to U.S. spot Bitcoin ETFs, a 50% decrease from the previous week’s $254 million.
Despite the overall bearish sentiment, the U.S. Bitcoin spot ETF market has seen a total inflow of $13.6 billion since its inception. In terms of other regions, Germany and Canada also experienced outflows of $16 million and $32 million, respectively. However, Switzerland and Brazil defied this trend and saw inflows of $5 million and $4 million, respectively.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article may reflect the author’s personal opinions and do not necessarily represent The Crypto Basic’s opinion. Readers are advised to conduct their own research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
