- CoinShares' weekly report reveals crypto ETF outflows reached $584 million last week.
- US Bitcoin ETFs saw major outflows, CoinShares speculates that correction is underway.
- Multi-asset crypto products saw $98 million in inflows.
According to a CoinShares report on Friday, crypto exchange-traded products saw a second consecutive week of outflows, with over $584 million leaving these products last week. The recent increased outflows may engender a steeper crypto correction.
Crypto ETFs record outflows for the second week in a row
Global crypto ETFs experienced increased outflows in the past week, totaling $584 million as of Friday. Digital assets outflows have hit a cumulative $1.2 billion combined with outflows from the previous week.
Also read: Crypto ETFs experience heavy outflows after FOMC meeting
US crypto ETFs saw the highest outflows, settling at $475 million. This may be due to growing FUD among investors toward the recent rate cuts by the Federal Reserve (Fed). The Fed's move may have spiked increased bearish sentiment toward crypto products.
Canada, Germany and Hong Kong crypto ETFs also saw outflows in the past week that surpassed $150 million. Only Brazil and Switzerland saw inflows of $48.5 million and $39 million, respectively.
Read more: Bitcoin price set to retest key support level amid ETFs outflow and miners reserve concerns
Bitcoin ETFs continue to experience the highest outflows with $630 million in total. This follows a continuous decline in the asset's price, which closed the past week at $63,000 and has dipped to $60,900 at the time of writing.
Ethereum investment products also saw their fair share of outflows last week. Globally, they saw $58 million of outflows despite the SEC's "light" comment on issuers' S-1 drafts and submission of subsequent amendments.
CoinShares predicts that recent price movement and increased outflows could cause the crypto market to experience steeper corrections.
Also read: Whales see Ethereum's decline as buying opportunity with ETH ETFs on horizon
A few altcoin ETFs managed to defy the larger trend of outflows, with Solana, Litecoin and Polygon-based products recording net inflows of $2.7 million, $1.3 million and $1 million, respectively. Multi-asset crypto products also saw $98 million in inflows, indicating "investors saw the weakness in the altcoin market as a buying opportunity."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP holds steady above $0.47 as Ripple President breaks silence on Real USD stablecoin
Ripple President Monica Long recently appeared on The Block Podcasts and addressed XRP trader concerns about the stablecoin’s launch. The payment remittance firm’s stablecoin is called Real USD (RLUSD) and is slated for launch in 2024.
Bitcoin Weekly Forecast: BTC price correction could end in July, according to seasonal data
Bitcoin price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.
TON and Telegram narrative may be overvalued according to new research
Toncoin, Telegram narrative may be overestimated according to analysts at Blockworks Research. The social media messaging app has a relatively low number of daily active users, and no EVM compatibility.
Dogecoin price poised for 13% rally after finding support on a key level
Dogecoin price has stabilized around $0.118, aligning with the 200-week Exponential Moving Average (EMA), while on-chain data reveals a rising trend in DOGE's development activity, reflecting optimistic sentiment among investors.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.