Crypto Investment Products register outflows of $251 million for the fourth week in a row

The crypto investment landscape had a turbulent week, with outflows continuing for the fourth week in a row. Outflows amounted to a significant $251 million.

According to a report from CoinShares, this week saw the first case of measurable outflows from the newly launched ETFs in the United States, which saw a significant outflow of $156 million.

Most important points:

• Digital asset investment products witnessed their fourth consecutive week of outflows, with a total of $251 million.
• US ETFs see first measurable outflows of $156 million.
• Hong Kong’s spot-based Bitcoin and Ethereum ETFs have successfully launched, attracting $307 million in inflows in their first week.
• Bitcoin remains the primary focus, with outflows of $284 million; Ethereum breaks a seven-week outflow period with an inflow of $30 million.
• Altcoins including Avalanche, Cardano and Polkadot are seeing modest inflows.

Analysts at CoinShares estimate that the average purchase price of these US ETFs since their launch is around $62,200 per Bitcoin. Since the BTC price fell 10% below that level, this may have triggered automatic sell orders, contributing to the outflows seen last week.

Read more: Australian Taxation Office demands data on 1.2 million crypto accounts: report

Cryptocurrency outflows were concentrated in the United States

From a regional perspective, the outflow was mainly concentrated in the United States. The US saw a notable outflow of $504 million. However, other countries such as Canada, Switzerland and Germany also witnessed outflows but on a smaller scale, totaling $9.6 million, $9.8 million and $7.3 million respectively.

Amid the generally negative sentiment, the successful launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong emerged as a bright spot. These newly launched investment vehicles attracted an impressive $307 million in inflows during their first week of trading.

Bitcoin has also remained the main focus of the outflow, with $284 million in capital leaving the market. Interestingly, Bitcoin was the only digital asset to experience an outflow during this period.

Ethereum, on the other hand, managed to break the seven-week period of outflows and attracted $30 million in inflows last week.

A wide range of altcoins also saw inflows, albeit on a more modest scale compared to Bitcoin and Ethereum. Among the most notable were Avalanche, Cardano, and Polkadot, with inflows of $0.5 million, $0.4 million, and $0.3 million, respectively.