Key Points
- Digital asset investment products experienced $206 million outflows last week, led by Bitcoin with $192 million.
- Ethereum followed with $32 million outflows, marking its 6th consecutive week of loss.
Digital Asset Investment Products Record Outflows
Last week saw a significant increase in outflows from digital asset investment products, more than doubling from the previous week. A report from CoinShares revealed that the outflows totalled a substantial $206 million.
Bitcoin led the way with outflows reaching $192 million, with Ethereum trailing behind at $32 million. This marked a stark increase from the previous week’s outflows of $106 million, highlighting a risk-off approach from investors.
US Dominates Bearish Sentiment
The US was at the forefront of this bearish sentiment, with US ETFs (exchange-traded funds) accounting for $244 million in outflows. Demand for new spot BTC ETFs also diminished, with inflows remaining muted compared to previous weeks.
Data from Farside Investors confirmed this trend. Between 15th and 18th April, US spot BTC ETFs recorded a total of $264 million in outflows. Furthermore, total volumes linked to Bitcoin also decreased over the same period, which the report attributes to interest fears.
Despite this, only a few investors took the opportunity to short Bitcoin during this period of interest fears. Short-Bitcoin products only saw $0.3 million outflows, according to the report.
Altcoin Outflows
On the altcoin front, Ethereum’s $32 million outflows marked its 6th week in a row, highlighting a rough start to Q2 for the cryptocurrency. Solana and Bitcoin Cash followed closely, each with $0.3 million in outflows.
However, Chainlink and Litecoin recorded substantial inflows, indicating that they were investors’ favorites during this period. It’s also worth noting that US spot BTC ETFs recorded net inflows on April 19th and 20th as Bitcoin recovered above $66K.
This recovery could potentially switch investors from a risk-off to a risk-on approach, and increase inflows for digital asset investment products.
