Crypto Investment Products See First Outflow in 4 Weeks Totalling $528M

Crypto investment products witnessed negative flows over the past week, with a cumulative outflow of $528 million. This marks the first outflow seen by the products in the past four weeks.

Investors Pulling Out Funds from Crypto Products

According to data from CoinShares, Bitcoin saw outflows of $400 million, ending a five-week streak of inflows. Concurrently, short-bitcoin positions saw their first significant inflows since June, totaling $1.8 million.

On the other hand, Ether saw outflows of $146 million, bringing the net outflow since the launch of US Ether exchange-traded funds (ETFs) to $430 million. This figure, however, masks the positive inflows of $430 million last week into the newly launched ETFs — offset by substantial outflows of $603 million from Grayscale Ethereum Trust (ETHE). ETHE has seen a net outflow of $2.12 billion since it started trading on July 23.

Per CoinShares data, European Ether ETPs also recorded minor outflows.

The analysis shows that blockchain equities continued their sell-off, with outflows reaching $18 million last week. This aligns with outflows experienced by broad tech-related ETFs.

Meanwhile, trading volumes in exchange-traded products (ETPs) reached $14.8 billion, constituting a relatively low 25% of the overall market. The week ended in a sharp price correction that saw a staggering $10 billion exit the total assets under management (AUM) of ETPs.

Regionally, products launched in the US saw the most outflows, totaling $531 million. Hong Kong, Germany, and Sweden experienced weekly outflows of $27 million, $12 million, and $7 million, respectively. In contrast, Canada and Switzerland recorded inflows of $17 million and $28 million, respectively.

Crypto Market Liquidation 

CoinShares analysts have attributed the latest sell-off of crypto investment products to investors’ reactions to fears of a recession in the US, geopolitical tensions, and significant market liquidation.

An earlier report shows that over $900 million in long positions were liquidated across the market over the past 24 hours. On Monday, BTC plunged 18% to hit a five-month low of $49,700 before recovering to $53,000.