Bitcoin (BTC) has suffered the most significant blow as cryptocurrency-focused investment products experienced outflows of $251 million in the past week, marking the fourth consecutive week of sustained capital exit.
Traditional investment products linked to cryptocurrencies have been impacted by the ongoing market volatility. CoinShares, a capital market firm, gathered data showing that these investment instruments saw a net outflow of $251 million last week.
This latest data signifies the fourth straight week of sustained outflows, with the previous figure reaching $435 million, the highest since March. These outflows have continued despite the Grayscale Bitcoin Trust (GBTC), the main contributor, observing a decrease in capital withdrawals.
Bitcoin was the only asset among the indexed cryptocurrencies to witness outflows last week, with a total of $284 million. In contrast, Ethereum (ETH) experienced inflows of $30 million, effectively ending a 7-week streak of outflows. Although altcoins such as Cardano, Polkadot, Solana, and XRP saw modest inflows, Bitcoin’s $284 million outflow surpassed these figures.
Despite the gloomy situation, last week saw the launch of six spot crypto ETFs in Hong Kong, as asset managers in the Asian city-state aimed to replicate the success of their U.S.-based counterparts. Prior to their launch, ChinaAMC divisional head Zhu Haokang expressed confidence in the potential of these products to surpass the U.S.-based ones on their first trading day.
However, these Hong Kong investment products debuted with a trade volume of $112 million, significantly below the $4.54 billion recorded by the U.S.-based spot Bitcoin ETFs. Although the volumes of the Hong Kong products declined throughout the week, they still managed to attract $307 million in capital inflows.
While the recently launched Hong Kong-based spot Bitcoin ETFs contributed to positive momentum, global capital exit overshadowed this figure, resulting in a net outflow of $251 million overall. Most of the outflows came from the U.S., which saw negative flows amounting to $504 million.
Other countries also experienced outflows, with only Brazil and Hong Kong recording inflows. The underperformance of spot Bitcoin ETFs in the U.S. was a major factor contributing to the outflows, totaling approximately $156 million.
However, recent data indicates a shift in this trend, with the current week already showing a bullish outlook. Notably, GBTC experienced its second consecutive inflow yesterday after months of persistent outflows. Additionally, yesterday marked the first time that all spot Bitcoin ETFs in the U.S. saw positive flows.
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