Record Outflows Hit Cryptocurrency Investment Products

Solana logo and a bitcoin

Crypto asset investment products witnessed a $942 million outflow last week, following a record seven-week influx of $12.3 billion. This discharge figure is also a record. New ETF issuers in the United States experienced a $1.1 billion influx. However, this largely compensated Grayscale’s massive $2 billion outflow last week. Let’s look at the specifics.

Altcoin-Focused Crypto Investment Products

The rest of the altcoin market did well, with a net inflow of $16 million. Polkadot received $5 million in inflows, followed by Avalanche (AVAX) with $2.9 million and Litecoin with $2 million.

Trading volumes in ETPs, while strong at $28 billion per week, were around two-thirds of the prior week. The latest price drop reduced the total assets under management (AuM) by $10 billion, although it is still above the previous cycle’s top of $88 billion.

The outflows weren’t restricted to the United States. Sweden, Switzerland, Hong Kong, and Germany had outflows of $37 million, $25 million, $35 million, and $4 million, respectively. However, Brazil and Canada received $9 million and $8.4 million, respectively.

Majority of Outflows in Bitcoin

Bitcoin accounted for 96% of the withdrawals, with $904 million exiting the market, while short-term Bitcoin products had tiny outflows totaling $3.7 million.

Ethereum, Solana, and Cardano also had outflows of $34 million, $5.6 million, and $3.7 million, respectively.

Author: Simeon

Simeon is a seasoned crypto writer with a passion for exploring the fascinating world of blockchain and digital currencies. With a background in finance and technology, Simeon brings a unique perspective to his writing, delving into the complexities of decentralized finance, cryptocurrency trading, and emerging blockchain projects.