- Crypto investment products record net outflows for first time in four weeks after shedding $528 million.
- Bitcoin was hit the hardest, seeing $400 million in outflows last week.
- Ethereum ETFs saw $146 million in net outflows as wider market bearish pressure may be hampering its performance.
Crypto ETFs weren't spared from the bearish pressure facing the capital markets after experiencing $528 million in net outflows last week, according to CoinShares digital asset weekly report. Last week's outflows ended their four-week streak of net inflows.
Crypto investment products record outflows as crypto market plunges
Digital asset investment products halted their inflow streak last week following increased outflows across the investment market. They recorded net outflows of $528 million, ending a four-week run of steady inflows through July.
The net outflows were characterized by increased bearish sentiment due to a general market downturn triggered by Genesis Trading and continued Mt. Gox creditor repayment. Geographically, the US had the highest outflows, totaling $531 million. Hong Kong, Germany and Sweden also saw outflows of $27 million, $11 million and $6 million, respectively.
Meanwhile, Canada and Switzerland were unaffected by the general outflows, seeing inflows of $17 million and $28 million, respectively.
Across asset classes, Bitcoin had the most outflows, recording net outflows of $400 million. This could be due to the general dip in the crypto market and fears of a recession in the US.
Bitcoin's net outflows ended a five-week run of inflows despite positive political sentiment toward the crypto industry and news of Morgan Stanley preparing for Bitcoin investments.
On the other hand, Short-Bitcoin ETF recorded inflows for the first week since June, totaling $1.8 million.
Additionally, Ethereum ETFs recorded net outflows of $146 million last week, which stretched its net outflows since the launch of the US spot ETH ETFs to $430 million.
Flows by Assets
Meanwhile, the general crypto market decline saw it wipe out $367 billion from its value.
Bitcoin amplified losses from the weekend on Monday, accepting a 7% decline, and Ethereum saw its price dip by 11% in the past 24 hours, stretching its 7-day losses to 24%.
The general downturn spurred heavy losses among derivatives traders, with total crypto liquidations nearing $1.1 billion.
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