Bitcoin and Ethereum Drive $1.94 Billion in Outflows: A Look at Recent Trends

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Summary:
The crypto market experienced significant pressure last week, resulting in $1.94 billion in combined outflows from investment products linked to Bitcoin and Ethereum. This downturn highlights the ongoing bearish trend among institutional investors and has resulted in the third-largest outflow run since 2018.

Key Takeaways:

Bitcoin and Ethereum faced substantial outflows, totaling $1.27 billion and $589 million, respectively.
Overall, digital asset investment products reported $1.94 billion in outflows, marking a fourth consecutive week of declines.
Despite the trend, some products, like XRP, experienced inflows, suggesting pockets of resilience in the market.
The U.S. was the primary contributor to these outflows, accounting for $1.68 billion.

Major Outflows in the Crypto Market

Amid last week's significant market sell-off, crypto investment products, particularly those associated with Bitcoin and Ethereum, recorded outflows totaling $1.94 billion. This decline reflects the considerable volatility affecting these major cryptocurrencies. Bitcoin hit a multi-month low at approximately $80,600, while Ethereum dropped to around $2,600.

Significant Outflow Trends Since 2018

According to a recent report by CoinShares, the outflows from digital asset investment products underscore a strongly bearish sentiment among institutional investors. The total outflows over the past four weeks have now reached $4.92 billion, the third-largest outflow period since 2018.

Bitcoin and Ethereum at the Forefront of Outflows

The report highlighted that Bitcoin and Ethereum led the way in outflows. Bitcoin suffered about $1.27 billion in redemptions, while Ethereum saw outflows of $589 million. Nonetheless, Bitcoin showed signs of stabilization, with $225 million in inflows on the last trading day of the week, which helped boost market confidence. Ethereum also saw a rebound with $57.5 million in inflows.

Apart from these two, other cryptocurrencies such as Solana, multi-asset products, and Sui recorded notable outflows, totaling $156.2 million, $35.9 million, and $5 million, respectively.

Flows by Assets

XRP Shows Resilience Amid Outflows

In contrast to the overall trend, XRP emerged as a surprising exception during a challenging week for digital asset products. XRP-related investment vehicles attracted $89.3 million in inflows, lifting its total assets under management to $2.23 billion. This growth was partly due to increased interest following the launch of the Canary XRP ETF and the Bitwise XRP ETF, which drew fresh institutional investments.

In addition to XRP, a few other products saw minor inflows. Short Bitcoin products attracted $19 million in new investment, while Litecoin and Cardano saw inflows of $3.3 million and $100,000, respectively.

Flows by Country

Regional Trends in Crypto Investment

Examining regional trends, the United States accounted for the largest share of outflows, experiencing $1.68 billion in redemptions. Other countries followed suit, with Germany, Switzerland, Canada, and Sweden reporting outflows of $118.2 million, $79.7 million, $27.1 million, and $26.8 million, respectively. In contrast, Brazil and Australia saw positive inflows, totaling $3.5 million and $2 million, respectively.

Disclaimer: This article is for informational purposes only and should not be viewed as financial advice. The opinions expressed are those of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to conduct their own research before making any investment decisions. The Crypto Basic is not liable for any financial losses.