Cryptocurrency Investment Products See Outflows Amid Market Pullback

Over the past week, cryptocurrency investment products experienced outflows totaling $942 million, marking a sharp reversal after seven weeks of inflows. Bitcoin-focused products accounted for the bulk of these outflows, shedding $904 million, while Ethereum-focused products witnessed outflows of $34.2 million. Amidst market uncertainty, spot Bitcoin exchange-traded funds have also faced record outflows, with $888 million leaving these funds.

Cryptocurrency Investment Products Face Outflows Amid Market Correction

New York - Cryptocurrency investment products witnessed a collective $942 million in net outflows over the past week, reversing a seven-week inflow streak that had amassed over $12 billion, as investors exhibited caution stemming from a recent market correction.

CoinShares' Digital Asset Fund Flows report highlights continued high trading volumes in exchange-traded products (ETPs), reaching $28 billion in the past week, albeit two-thirds lower than the previous week. The price correction resulted in a $10 billion decline in assets under management, leaving them at $88 billion.

Bitcoin-focused investment products bore the brunt of the outflows, accounting for $904 million. Ethereum-focused products also experienced outflows totaling $34.2 million. Altcoins such as Solana and Cardano contributed $5.6 million and $3.7 million to the outflow, respectively, while multi-asset products saw outflows of $7.3 million.

Notably, investment products providing exposure to XRP witnessed inflows of $1.2 million, while Polkadot ($DOT)-focused products attracted $5 million.

Bitcoin Exchange-Traded Funds Witness Record Outflows

As reported by CryptoGlobe, spot Bitcoin exchange-traded funds (ETFs) faced record net outflows amidst heightened market uncertainty. Bitcoin's price plunged from an all-time high above $73,000 to a low of approximately $61,000 before rebounding.

In the past week alone, these funds experienced a remarkable $888 million in net outflows, marking the most protracted period of net outflows to date. This eclipses the previous four-day streak recorded in January. Monday, March 18th, was particularly notable, with Grayscale's GBTC absorbing the heaviest outflow.

Possible Genesis Global Tie to GBTC Share Sales

Coinbase Research recently shed light on a potential source of selling pressure in the spot Bitcoin ETF market. The bankruptcy estate of Genesis Global is reportedly contemplating selling a significant portion of GBTC shares, apart from those pledged as collateral for Gemini Earn users.

While a direct connection remains unestablished, the timing of the considerable changes in GBTC shares outstanding has raised eyebrows.