For the third consecutive week, cryptocurrency investment products faced stiff withdrawals amounting to $435 million. This decline marks the most significant outflow since March of this year. Despite a slowdown in withdrawals from Grayscale, new issuers experienced a decrease in inflows, receiving only $126 million last week.
Majority of Withdrawals from the US
The total outflows of $388 million were mainly concentrated in the US market, highlighting a significant decline. However, it is essential to acknowledge that inflows have remained strong, reaching $13.6 billion since the beginning of the year.
Specifically, Grayscale witnessed a notable decrease, with $440 million leaving its portfolio, marking the lowest performance in the past nine weeks. Meanwhile, Germany and Canada struggled with withdrawals of $16 million and $32 million, respectively. In contrast, Switzerland and Brazil challenged this trend with inflows of $5 million and $4 million, respectively.
Bitcoin and Ethereum Bear the Brunt; Altcoins Offer Hope
Withdrawals primarily targeted Bitcoin and Ethereum, with outflows of $423 million and $38 million, respectively. Nonetheless, various altcoins provided a glimmer of hope as they attracted investor interest. Multi-coin investment products experienced a modest increase with $7 million in inflows, while altcoins like Solana, Litecoin, and Chainlink continued to shine with inflows of $4 million, $3 million, and $2.8 million, respectively.
In terms of trading volumes, ETPs experienced a similar decline of 6% in line with the 6% drop in Bitcoin prices, decreasing from $18 billion to $11.8 billion. Despite these challenges, the cryptocurrency market continues to remain dynamic, offering opportunities amidst evolving trends and investor sentiments.
Comments