- Global ETP investors pulled out $126 million from digital asset investment products last week, with Bitcoin accounting for $110 million of the outflows
- Ethereum saw its fifth consecutive week of outflows totaling $287 million, while Solana had $36 million in outflows
- Altcoins like Litecoin, XRP, Polkadot, Decentraland, Basic Attention Token and LIDO witnessed inflows ranging from $300,000 to $49 million
Digital asset investment products experienced a notable setback last week with outflows reaching $126 million, according to CoinShares‘ latest weekly report. Bitcoin‘s outflow accounted for a significant portion, representing 87% of the total net flow for the week.
Bitcoin Outflows
CoinShares’ Head of Research James Butterfill attributed the outflow trend to investors‘ cautious stance following the end of price momentum in the market. He furthered that ETF/ETP trading activity declined compared to the broader market, with total volume reaching only 31% last week.
Nonetheless, there was a slight week-on-week increase in volume from $17 billion to $21 billion. Several Bitcoin investment products, including Grayscale GBTC, ProShares BITO, and Purpose ETF primarily drove the outflows, with their cumulative flows almost reaching $1 billion.
Counterflows in Altcoins
On the other hand, BlackRock IBIT, Fidelity FBTC, and Ark 21Shares ARKB’s inflows could only partially offset the outflows, leaving Bitcoin products with a total outflow of $110 million for the week.
Butterfill added that regionally, the US saw the largest outflows totaling $145 million, while Switzerland and Canada followed with $57 million and $6 million outflow respectively. Investors in Germany saw recent price weakness as an opportunity, seeing $29 million inflows last week.
Ethereum and Solana
Meanwhile, Ethereum continued its negative trajectory with a fifth consecutive week of outflows totaling $28.7 million. Its month-to-date flow now stands at negative $51.3 million, with a year-to-date flow of only $2.3 million, signaling potential erosion of its gains for the year.
Joining Ethereum in negative territory, Solana saw outflows of $3.6 million, while multi-asset products recorded $5.6 million in outflows.
Inflows for Altcoins
Interestingly, Short Bitcoin saw a reversal in its trend with $1.7 million in inflows after three consecutive weeks of outflows. This suggests a resurgence of bearish sentiment amid significant market volatility.
On a brighter note, several altcoins witnessed positive flows. Litecoin, XRP, and Polkadot attracted inflows of $1.6 million, $300,000, and $800,000 respectively. Even lesser-known altcoins like Decentraland, Basic Attention Token, and LIDO saw inflows of $4.9 million, $2.9 million, and $1.8 million respectively.
Conclusion
The report highlights the oscillating sentiment between Bitcoin and altcoins among institutional investors. While Bitcoin saw heavy outflows, interest picked up for several major and minor altcoins. The upcoming Bitcoin halving will likely drive further shifts in investment flows between crypto assets.
