Bitcoin experienced a more than 5% decline last week, leading to capital withdrawals from virtual asset vehicles such as spot exchange-traded funds. CoinShares reported outflows from digital asset investment products reaching $435 million, coinciding with a 6% decrease in ETF trading volume. Trading activity dropped from over $18 billion two weeks ago to $11.8 billion last week. Bitcoin (BTC) and Ethereum (ETH) were the main assets being withdrawn, with $423 million and $38 million leaving the market, respectively. The majority of these withdrawals, particularly in BTC, were observed in the U.S. and mostly through Grayscale’s converted GBTC ETF.

Grayscale’s spot Bitcoin ETF saw $440 million in outflows, marking the lowest weekly withdrawals from GBTC since March. Meanwhile, inflows into new spot BTC ETFs also decreased. With Bitcoin prices stagnating, only $126 million in total capital entered 10 new spot BTC ETFs offered by companies like BlackRock and Fidelity.

As Ethereum outflows mirrored the sentiment towards BTC, altcoin products in the crypto market attracted investments from asset managers and investors. CoinShares analysts noted, “A broad range of altcoins saw inflows, with investors opting for multi-coin investment products as well as popular choices like Solana, Litecoin, and Chainlink.” Over $9 million flowed into these altcoin investment products, with Solana (SOL) leading the way with $4 million in inflows, followed by Litecoin (LTC) with $3 million, and Chainlink (LINK) attracting $2.8 million.

For more insights into the latest developments in the cryptocurrency market, make sure to stay updated with Global Crypto News.

Post Views: 3