Crypto ETF outflows cross $500 million as Bitcoin decline persists

According to a CoinShares report on Friday, crypto exchange-traded products saw a second consecutive week of outflows, with over $584 million leaving these products last week. The recent increased outflows may engender a steeper crypto correction.

Crypto ETFs record outflows for the second week in a row

Global crypto ETFs experienced increased outflows in the past week, totaling $584 million as of Friday. Digital assets outflows have hit a cumulative $1.2 billion combined with outflows from the previous week.

Also read: Crypto ETFs experience heavy outflows after FOMC meeting

US crypto ETFs saw the highest outflows, settling at $475 million. This may be due to growing FUD among investors toward the recent rate cuts by the Federal Reserve (Fed). The Fed's move may have spiked increased bearish sentiment toward crypto products.

Canada, Germany and Hong Kong crypto ETFs also saw outflows in the past week that surpassed $150 million. Only Brazil and Switzerland saw inflows of $48.5 million and $39 million, respectively.

Read more: Bitcoin price set to retest key support level amid ETFs outflow and miners reserve concerns

Bitcoin ETFs continue to experience the highest outflows with $630 million in total. This follows a continuous decline in the asset's price, which closed the past week at $63,000 and has dipped to $60,900 at the time of writing.

Ethereum investment products also saw their fair share of outflows last week. Globally, they saw $58 million of outflows despite the SEC's "light" comment on issuers' S-1 drafts and submission of subsequent amendments.

CoinShares predicts that recent price movement and increased outflows could cause the crypto market to experience steeper corrections.

Also read: Whales see Ethereum's decline as buying opportunity with ETH ETFs on horizon

A few altcoin ETFs managed to defy the larger trend of outflows, with Solana, Litecoin and Polygon-based products recording net inflows of $2.7 million, $1.3 million and $1 million,  respectively. Multi-asset crypto products also saw $98 million in inflows, indicating "investors saw the weakness in the altcoin market as a buying opportunity."