Solana, Polygon, and Litecoin are among the altcoins that attracted institutional investors this past week, despite the market experiencing over $584 million in outflows from digital asset investment products.

Over the past two weeks, the digital asset investment products market has recorded outflows exceeding $1.2 billion. Bitcoin and Ethereum lead these outflows, which have come as BTC price struggled with downside pressure since its recent rejection in the $71k area.

Bitcoin and Ethereum See Over $688 Million in Outflows

According to details shared in a recent report, institutional investors continued to exhibit bearish behavior with a second consecutive week of outflows. Last week, crypto exchange-traded products (ETPs) saw outflows of $584 million, with the majority of these offloaded in the US market.

The largest outflows were for Bitcoin, which saw more than $630 million exiting Bitcoin ETPs across the market. Another $58 million left Ether products, bringing outflows for the top two cryptocurrencies to over $688 million.

“We believe this is in reaction to the pessimism amongst investors for interest rate cuts by the FED this year,” noted an expert.

These outflows highlight the ongoing correction in the market.

Low Volumes as Spot Bitcoin ETFs Record Outflows

Last week, digital asset investment products recorded their lowest volumes since the trading debut of multiple spot Bitcoin ETFs following the US Securities and Exchange Commission (SEC)’s approval in January. The total volume last week was just $6.9 billion.

US spot Bitcoin ETFs recorded over $544 million in outflows, with analysts pointing to “arbitrage unwinding rather than true sentiment” as a key catalyst.

Bitcoin price dropped below $62,000 on Monday as investors and traders reacted to an announcement from Mt. Gox that repayments to creditors will start in July. Miners selling has been another downward catalyst for BTC.

Ethereum has also declined to below $3,200, ahead of a potential approval of Ether spot ETFs for trading by next week.

Solana, Litecoin See Inflows

Despite the significant outflows for BTC and ETH, there was some interest in Solana, Litecoin, and Polygon products.

Several altcoins saw inflows as Bitcoin and Ethereum registered outflows. This came after the sector recorded significant drawdowns in recent weeks, which currently sees many altcoins down more than 10% over the week.

Solana and Litecoin are both down 11% in this time frame, while Polygon has shed over 8%.

Despite the weakness, inflows into Solana were $2.7 million. Meanwhile, Litecoin and Polygon saw $1.3 million and $1 million, respectively.

“Multi-asset products saw $98 million in inflows, suggesting investors see the weakness in the altcoin market as a buying opportunity,” noted an expert.

For more updates and in-depth analysis on the cryptocurrency market, explore more news on Global Crypto News.

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