Crypto Investment Products Witness $942 Million Outflow Amidst Market Correction

By: Eva Baxter

Following a spell of impressive record inflows, crypto-focused investment products saw a significant downturn last week, culminating in a total reported outflow of $942 million. This event indicates the end of a seven-week inflow streak amassing $12.3 billion. Last week's substantial outflows align with a market correction in the crypto space, leading to Bitcoin's price dropping to a multi-week low of $60,976 with other digital assets also experiencing a decline.

According to industry experts, this correction trimmed $10 billion from the total assets under management (AUM) for crypto-related investment products. Despite this, the present balance of $88 billion exceeds previous market cycle levels. Moreover, the total trading volume for these investment products shrank to $28 billion, falling from over $40 billion noted in the two preceding weeks.

It is noteworthy that the bleak market performance engendered bearish sentiments among investors, slashing the inflows into new spot Bitcoin ETFs in the US to a modest $1.1 billion. The consequential scant influx could not compensate for the significant $2 billion outflows recorded from Bitcoin Trusts. As a result, Bitcoin-focused products ended the week with a negative net flow of $904 million. Ethereum, Solana and Multiassets also sustained substantial outflows, marking an unfortunate week globally for crypto investment products, save for minor inflows in Canada and Brazil.

Alternatively, despite the broader market downturn, lesser-known cryptocurrencies like XRP, Polkadot, Avalanche, and Litecoin were recipients of modest inflows, indicating a positive week for these crypto assets.