Cryptocurrency investment products saw outflows totaling $942 million over the past week, after seven weeks of inflows that totaled more than $12 billion amid “hesitancy” among investors that came as a result of a recent cryptocurrency market correction.
According to CoinShares’ Digital Asset Fund Flows report, trading volumes in exchange-traded products (ETPs) remained high over the past week at $28 billion, a figure that represents two-thirds of the volumes seen in the prior week, after a price correction saw the total assets under management of these products drop by $10 billion to $88 billion.
The report notably details that Bitcoin-focused investment products suffered $904 million of outflows, while Ethereum-focused products saw $34.2 million of outflows. Altcoins including Solana and Cardano also saw outflows of $5.6 million and $3.7 million respectively, with multi-asset products seeing $7.3 million of outflows.
Notably, investment products offering exposure to XRP saw $1.2 million of inflows, while those offering exposure to Polkadot ($DOT) saw $5 million of inflows.
As CryptoGlobe reported, spot Bitcoin exchange-traded funds experienced record net outflows over the past week amid market uncertainty, with the price of Bitcoin dropping from a new all-time high above the $73,000 mark to a low around $61,000 before recovering.
In the past week alone, a staggering $888 million bid farewell to these funds, marking the longest run of net outflows to date. This new record surpasses the previous four-day streak set just a couple of months ago in January. Monday, March 18th, stood out as a particularly grim day, with Grayscale’s GBTC bearing the brunt of the outflow onslaught.
Last Friday, Coinbase Research shed light on a potential source of selling pressure that could be influencing the spot Bitcoin ETF market. The bankruptcy estate of Genesis Global is reportedly gearing up to sell a substantial chunk of GBTC shares, separate from the shares pledged as collateral for a loan from Gemini Earn users.
While the dots have yet to be officially connected, the timing of the significant changes in GBTC shares outstanding is certainly raising eyebrows.
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