Crypto Investment Outflows Extend to 3-Week Streak, Totaling $435 Million

Crypto Investment Outflows Extend to 3-Week Streak, Totaling $435 Million

As Bitcoin experiences a more than 5% decline last week, investors in the crypto space continue to withdraw capital from various virtual asset vehicles, including spot exchange-traded funds (ETFs).

According to data from CoinShares, outflows from digital asset investment products reached a total of $435 million, aligning with a 6% decrease in ETF trading volume. This reduction in activity has seen a notable decline from over $18 billion two weeks ago to $11.8 billion in the past week.

Bitcoin and Ethereum Dominate Outflows

The majority of capital outflows were observed from Bitcoin (BTC) and Ethereum (ETH), amounting to $423 million and $38 million, respectively. Notably, the bulk of these withdrawals, particularly in BTC, were concentrated in the U.S. and primarily linked to Grayscale’s converted GBTC ETF.

Grayscale’s spot Bitcoin ETF experienced outflows of $440 million, marking the smallest weekly withdrawal from GBTC since March. Concurrently, inflows into new spot BTC ETFs also decreased, with only $126 million flowing into 10 newly introduced spot BTC ETFs by firms such as BlackRock and Fidelity.

Altcoin Investment Products Gain Traction

While Ethereum outflows mirrored sentiment around Bitcoin, investment interest in crypto altcoin products surged among asset managers and investors. CoinShares analysts noted a diverse range of altcoins attracting inflows, with investors favoring multi-coin investment products alongside traditional favorites like Solana, Litecoin, and Chainlink.

Over $9 million flowed into altcoin investment products, with Solana (SOL) leading the pack with $4 million in inflows, followed by Litecoin (LTC) with $3 million, and Chainlink (LINK) attracting $2.8 million.

Conclusion: Shifting Trends in Crypto Investment

The recent streak of outflows from crypto investment products, particularly in Bitcoin, reflects ongoing market volatility and investor sentiment. However, the growing interest in altcoin investment products signals a potential diversification strategy among investors seeking exposure beyond traditional cryptocurrencies like Bitcoin and Ethereum. As market dynamics continue to evolve, investors will likely adjust their strategies to navigate the evolving landscape of the crypto market.

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