(Kitco News) – The streak of inflows into digital asset investment products ended last week as a total of $942 million flowed out of globally listed funds, the first outflow following a record 7-week streak of inflows totaling $12.3 billion.
“Trading volumes in ETPs, while high at US$28bn for the week, were 2/3rds that of the prior week,” said James Butterfill, Head of Research at CoinShares. “The recent price correction wiped US$10bn off total assets under management (AuM) but [remained] above prior cycle highs at US$88bn.”
“We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw US$1.1bn inflows, partially offsetting incumbent Grayscale’s significant US$2bn outflows last week,” he added.
It wasn’t just ETF issuers in the US that saw outflows as Sweden, Hong Kong, Switzerland, and Germany recorded losses of $37 million, $35 million, $25 million, and $4 million, respectively.
Helping to slightly offset the outflows were inflows of $9 million and $8.4 million into products listed in Brazil and Canada, respectively.
Bitcoin (BTC) accounted for 96% of the total flows, seeing a drawdown of $904 million, while short-Bitcoin also saw minor outflows totaling $3.7 million.
“Ethereum (ETH), Solana (SOL) and Cardano (ADA) also suffered, seeing US$34m, US$5.6m and US$3.7m respectively,” Butterfill said. “The rest of the altcoin space fared well, seeing a net inflow of US$16m, most notable were Polkadot (US$5m), Avalanche (US$2.9m) and Litecoin (US$2m).”
Data provided by Alternative shows that last week’s market-wide pullback caused a slight drop in sentiment, which fell from “Extreme Greed” territory to “Greed.”
But data provided by Coinglass shows that open interest in Bitcoin futures on exchanges remains elevated, currently sitting at $34 billion, less than $2 billion below the record high of $35.5 billion set on March 14.
