Crypto Investment Products Record $251M in Outflows for Fourth Straight Week

Published: May 7, 2024
Written By:
Vignesh Karunanidhi
Milk Road Writer

The crypto investment landscape experienced a turbulent week, with outflows persisting for the fourth week in a row. The outflow amounted to a substantial $251 million.

According to a report by CoinShares, this week marked the first instance of measurable outflows from the recently launched ETFs in the United States, which saw a significant $156 million in outflows.

Key points:

  • Digital asset investment products witnessed their fourth consecutive week of outflows, totaling $251 million.
  • U.S. ETFs see first-measurable outflows of $156 million.
  • Hong Kong’s spot-based Bitcoin and Ethereum ETFs launched successfully, attracting $307 million in inflows in the first week.
  • Bitcoin remains the primary focus, with $284 million in outflows; Ethereum breaks a 7-week outflow spell with $30 million inflows.
  • Altcoins, including Avalanche, Cardano, and Polkadot, see modest inflows.

Analysts at CoinShares estimate that the average purchase price of these U.S. ETFs since their launch has been approximately $62,200 per Bitcoin. As the BTC price fell 10% below that level, it may have triggered automatic sell orders, contributing to the outflows observed last week.

Read more: Australia’s Tax Office Demands Data On 1.2 Million Crypto Accounts: Report

Crypto outflows were concentrated in the United States

From a regional perspective, the outflows were predominantly concentrated in the United States. The US experienced a notable $504 million in outflows. However, other countries, such as Canada, Switzerland, and Germany, also witnessed outflows, but on a smaller scale, totaling $9.6 million, $9.8 million, and $7.3 million, respectively.

Amidst the generally negative sentiment, the successful launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong emerged as a bright spot. These newly introduced investment vehicles attracted an impressive $307 million in inflows during their first week of trading.

Bitcoin has also remained the primary focus of the outflows, with $284 million in capital exiting the market. Interestingly, Bitcoin was the only digital asset to experience outflows during this period.

Source: CoinShares

In contrast, Ethereum managed to break its seven-week spell of outflows, attracting $30 million in inflows last week. 

A diverse range of altcoins also saw inflows, although on a more modest scale compared to Bitcoin and Ethereum. Among the most notable were Avalanche, Cardano, and Polkadot, which saw inflows of $0.5 million, $0.4 million, and $0.3 million, respectively. 

Vignesh Karunanidhi

Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.

Vignesh Karunanidhi
Milk Road Writer
Vignesh has been a seasoned professional in the crypto space since 2017. He has been writing for over 6 years and specializes in writing and editing various types of crypto content, including news articles, long-form pieces, and blog posts, all focused on sharing the beauty of blockchain and crypto.