Digital asset investment products saw $600 million in outflows last week, marking the largest outflows since March 22, 2024 withdrawal came in response to a Federal Open Market Committee (FOMC) meeting, prompting investors to reduce their exposure to fixed supply assets.
Bitcoin products bore the brunt of the negative sentiment, experiencing $621 million in outflows dropping its price to 5.64% over the week, trading at $65,706. Despite this setback, Bitcoin has still rallied approximately 55% year-to-date.
Grayscale’s Bitcoin exchange-traded fund (ETF) emerged as the biggest loser, with outflows exceeding $274 million. Funds managed by Fidelity and ARK followed suit, each seeing nearly $150 million in withdrawals.
While Bitcoin struggled, some altcoins managed to attract modest inflows. Ethereum led the pack with $13 million in inflows, inspired by the recent decision from the U.S. Securities and Exchange Commission to allow Ether ETFs. LIDO and XRP also saw positive flows, receiving $2 million and $1 million respectively.
Despite these inflows, Ethereum’s price has not escaped unscathed. The second-largest cryptocurrency by market capitalization has fallen around 8% since last week, currently trading at approximately $3,500.
The United States accounted for the lion’s share of outflows, totaling $565 million. Canada, Switzerland, and Sweden also experienced negative flows. Germany, however, bucked the trend with $17 million in inflows.
Trading volumes remained subdued at $11 billion for the week, compared to the $22 billion weekly average this year. However, this figure still represents a significant increase from the $2 billion weekly average observed last year.
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