Crypto ETP outflows hit $528M amid recession fears and market turbulence
Crypto-related
investment
products
experienced
outflows
of
$528
million,
ending
a
four-week
streak
of
inflows,
according
to
CoinShares’
latest
weekly
report.
James
Butterfill,
the
head
of
research
at
CoinShares,
explained
that
the
outflows
were
triggered
by
concerns
about
a
potential
US
recession,
geopolitical
issues,
and
a
broader
market
liquidation
impacting
significant
cryptocurrencies.
Meanwhile,
the
firm
noted
that
the
exchange-traded
products
(ETPs)
had
a
below-average
trading
volume
of
$14.8
billion,
representing
only
25%
of
the
total
market.
Last
week’s
market
correction
also
reduced
the
value
of
ETPs’
assets
under
management
(AUM)
by
$10
billion
to
$89.6
billion.
Bearish
sentiments
emerge
Butterfill
pointed
out
that
bearish
sentiments
began
to
emerge
on
Bitcoin
last
week,
with
the
flagship
digital
asset
recording
outflows
of
$400
million
for
the
first
time
in
five
weeks.
Conversely,
short-Bitcoin
products
recorded
a
$1.8
million
inflow,
suggesting
investors’
sentiment
shifted
toward
betting
against
an
upward
BTC
price
movement.
This
move
is
entirely
not
surprising
as
US
Bitcoin
exchange-traded
funds
(ETFs)
saw
net
outflows
of
more
than
$80
million
last
week,
driven
by
Grayscale’s
Bitcoin
Trust
(GBTC),
Fidelity’s
FBTC,
and
Ark
21
Shares’
ARKB
outflows
of
$806
million,
$193
million,
and
$123
million,
respectively.
The
bearish
sentiments
also
extended
to
Ethereum,
which
saw
outflows
totaling
$146
million.
This
brings
the
total
net
outflows
from
the
digital
asset
to
$430
million
since
the
launch
of
spot
Ethereum
exchange-traded
funds
(ETFs)
in
the
US.
European
ETPs
also
contributed
to
the
overall
negative
flows
as
they
experienced
minimal
outflows
from
their
funds.
Butterfill
explained
that
the
outflows
were
primarily
influenced
by
the
$603
million
recorded
from
Grayscale’s
Ethereum
Trust
(ETHE),
which
overshadowed
the
$430
million
inflow
seen
by
the
other
Ethereum
ETF
issuers.
Meanwhile,
other
cryptocurrencies
like
Cardano
and
BNB
saw
minimal
activity
in
ETP
trading,
with
Solana
being
an
exception,
experiencing
outflows
of
$2.8
million.
Regionally,
the
US
experienced
an
outflow
of
$531
million,
while
Germany
and
Hong
Kong
saw
$12
million
and
$27
million
outflows,
respectively.
Conversely,
Canadian
and
Swiss
investors
capitalized
on
the
market
dip,
with
inflows
of
$17
million
and
$28
million,
respectively.
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