Key Points
- Bitcoin ETFs experienced a significant outflow of $544.1 million last week, indicating a possible market correction.
- Despite negative sentiment, altcoin investment products, such as Solana, Litecoin and Polygon, saw net inflows.
Spot Bitcoin ETFs in the U.S. saw a collective net outflow of $544.1 million last week.
This brings the total outflow to over $1.1 billion in the last two weeks.
Global Digital Asset Investment Products
Around the globe, digital asset investment products experienced outflows totaling $584 million for the second week in a row.
The trading volumes of these exchange-traded products were at their lowest since the U.S. spot Bitcoin ETFs were launched in January, standing at only $6.9 billion.
According to James Butterfill, Head of Research at CoinShares, these outflows are a reaction to investors’ pessimism regarding potential interest rate cuts by the FED this year.
He further stated that these additional outflows indicate that a true market correction might be underway.
Altcoin Investment Products Buck the Trend
Despite the negative sentiment, not all crypto investment products experienced outflows.
Altcoin investment products like Solana, Litecoin and Polygon saw net inflows of $2.7 million, $1.3 million and $1 million respectively.
This suggests that investors viewed the weakness in the altcoin market as a buying opportunity.
Bitcoin is currently trading at $61,349.
The largest cryptocurrency by market cap has seen a decrease of 4.5% over the past 24 hours.
This comes amidst confirmation from the Mt. Gox Rehabilitation Trustee that around $9 billion in bitcoin and bitcoin cash repayments will start from July.
Ethereum-based investment products also saw global net outflows of $58 million.
This happened despite movement on prospective issuers’ S-1 registration filings with the Securities and Exchange Commission last week, ahead of a potential July 2 launch date.
Meanwhile, the GMCI 30, which represents a selection of the top 30 cryptocurrencies, has decreased by 4% in the last 24 hours, standing at 124.81.
CoinShares also announced on Monday that it has successfully sold its FTX claim, yielding a 116% recovery rate in fiat terms net of broker fees.
This resulted in a return of £31.3 million ($39.7 million) on a £26.6 million claim ($33.7 million).
