Cryptocurrency Investment Products See Net Outflows Amid Market Volatility, Bitcoin ETF Inflows Hit Low

Cryptocurrency investment products witnessed net outflows of $126 million last week amid volatility in Bitcoin and the broader market. Bitcoin ETFs saw their lowest weekly inflows at $572 million, while GBTC registered $767 million in outflows. Altcoins also experienced net outflows, with Ethereum facing $29 million in negative flows. Despite the outflows, Bitcoin has rebounded above $66,000, and altcoins have gained 8-15% in the past 24 hours.

Cryptocurrency Investment Products Experience Net Outflows Amidst Market Uncertainty

The cryptocurrency market has witnessed a period of heightened volatility, leading to net outflows from investment products. Data from CoinShares reveals that the total outflows from crypto investment products reached $126 million last week, indicating a cautious stance among investors ahead of the upcoming Bitcoin halving event.

Bitcoin ETF Inflows at Lowest Point

The nine Bitcoin exchange-traded funds (ETFs) registered their lowest weekly inflows at $572 million, while the Grayscale Bitcoin ETF (GBTC) alone experienced significant outflows of $767 million. This resulted in negative net flows for the sector.

Regional Outflows Dominated by US

The United States accounted for the largest outflows, reaching a substantial $145 million. Other markets, including Canada and Switzerland, also witnessed outflows of $6 million and $5.7 million, respectively. Notably, Germany bucked the trend, registering net inflows of $1.7 million.

Grayscale's GBTC Continues to Struggle

Grayscale's GBTC has faced persistent outflows, with over $767 million being withdrawn in the past week. This has led to a significant narrowing of the gap in Bitcoin reserves between Grayscale and BlackRock, which has maintained a steady presence in the market with its IBIT Bitcoin ETF surpassing $15 billion in assets under management. It is speculated that a portion of the outflows from GBTC may have been directed towards BlackRock.

Altcoins Witness Net Outflows

In addition to Bitcoin, altcoins also experienced net outflows due to the subdued market sentiment. Ethereum (ETH), the second-largest cryptocurrency, saw outflows of $29 million. However, some lesser-known altcoins bucked the trend. Decentraland, Basic Attention Token, and LIDO received inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.

Market Volatility Stabilizes Amid Anticipation of Halving

Despite the recent turbulence caused by geopolitical tensions and the escalating Iran-Israel conflict, Bitcoin and the broader cryptocurrency market have shown signs of stabilization. Investors appear to be looking past these events, with anticipation building towards the upcoming Bitcoin halving event.

Bitcoin Bounces Back, Altcoins Show Gains

In a positive turn of events, Bitcoin has regained momentum and surpassed $66,000, while altcoins have experienced gains ranging from 8% to 15% in the past 24 hours. This suggests that investors are becoming increasingly optimistic about the future of the cryptocurrency market.