Crypto Asset Outflows Continue, Witnessing 4 Consecutive Days of Decline

By: Isha Das

Crypto ETFs Face Fourth Consecutive Day of Outflows

April 29 marked the fourth consecutive trading day of outflows for US Bitcoin ETFs, recording an outflow of $51.6 million, according to data from Farside Investors. This points out the prevailing market sentiment which seems to be mirroring this same trend, with other funds like Grayscale’s GBTC and BlackRock’s IBIT also seeing changes. GBTC encountered an outflow of $24.7 million, bringing its total outflows to $17,209.3 billion, while BlackRock’s IBIT maintained its total inflows at $15,478.6 billion with no inflow or outflow for the fourth consecutive trading day.

Third Consecutive Week of Crypto Withdrawals

CoinShares data shows that crypto funds have seen outflows for three straight weeks, with $435 million being pulled from digital asset funds last week alone. This is the third week of continuous withdrawals and representative of the current sentiment among institutional investors. Substantial outflows have been particularly noticeable from Bitcoin funds, riding at $423 million.

Stagnanation in Inflows and a Market Change

Investments into ETFs have seen a decline over the past few weeks. The largest digital assets are now struggling to attract inflows amidst a stalemate in US interest rates. Grayscale’s GBTC continued its withdrawals streak, recording $440 million in outflows. At the same time, Ethereum witnessed $38.4 million in outflows last week. Multi-coin investment products, however, saw some positive responses with notable inflows.

Outlook for Crypto Funds

Gauging the fast-changing sentiments, investor perceptions might provide more clarity on the direction of crypto fund flows in the coming weeks. With six Spot Bitcoin and Ether exchange-traded funds (ETFs) gearing up to launch in Hong Kong, their entry into the Asian market might lead to significant shifts in the market.