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Among the digital asset investment products that are experiencing outflows for the third consecutive week, flagship cryptocurrency Bitcoin (BTC) is visibly in the lead.
The digital asset ecosystem, including spot crypto ETFs, has seen increased outflows for the past week, running to the tune of $435 million. Noteworthy, this marks the highest volume of outflows that the industry has seen since March. With the drop, it becomes evident that ETF investors have dropped the hype and momentum they nursed in the first month of spot Bitcoin ETF approval.
A large percentage of this flow ($388 million) is from the United States, and its YTD inflows are still at a record $13.6 billion.
Exchange-traded products (ETPs) are feeling the brunt of the bearish sentiment, having recorded a significant drop in trading volume.
Explicitly, ETP trading volume went from $18 billion to $11.8 billion in one week. For a very long time, spot Bitcoin ETFs like BlackRock's IBIT have managed to extend its streak of inflows, but it was abruptly interrupted after 71 days in the past week by outflows, suggesting a notable drop in demand. Some others, including Grayscale’s GBTC, equally registered outflows.
Grayscale sees outflows, BTC price plunge
For the past week, Bitcoin's price plummeted and had dropped as low as $64,000. The coin has plunged further by 6% and is currently trading at $62,461.12, casting doubts in the minds of short-term investors.
Like the trend for the past few months, Grayscale spot Bitcoin ETF is leading the outflows. It recorded its lowest outflow in nine weeks at $440 million. Amid the perceived drop in demand, new Bitcoin issuers have driven inflows to the niche. About two weeks ago, inflows went as high as $256 million but came down to only $226 million last week.
The numerous outflows from these Bitcoin-linked products have triggered a drop in altcoins. Ethereum (ETH) is equally seeing an increase in outflows, while other altcoins like Solana (SOL), Litecoin (LTC) and Chainlink (LINK), continue to see inflows of $4 million, $3 million and $2.8 million, respectively.
Arman Shirinyan
Alex Dovbnya
Gamza Khanzadaev
