As an experienced financial analyst with a background in digital asset investment, I find the recent outflows from digital asset investment products quite concerning. Last week’s $600 million in outflows mark the largest since March 2024 and were primarily driven by investors reducing their exposure to fixed supply assets following an FOMC meeting. The sell-off was particularly harsh on Bitcoin, with products seeing a massive $621 million in outflows.
Last week, investments in digital assets experienced a significant withdrawal of $600 million, which represents the largest outflow since March 22, 2024. This mass selling occurred following a Federal Open Market Committee (FOMC) meeting that led investors to reconsider their holdings of fixed supply assets, resulting in reduced exposure to these types of assets.
Bitcoin-related products faced a significant wave of pessimism last week, resulting in a net withdrawal of $621 million. Consequently, the price of Bitcoin dipped by around 5.64%, settling at $65,706. However, it’s important to note that Bitcoin has managed to gain approximately 55% in value since the beginning of the year, despite this recent downturn.
As a researcher studying the recent trends in Bitcoin exchange-traded funds (ETFs), I’ve observed some significant outflows. Among these, Grayscale’s Bitcoin ETF experienced the most substantial losses, with investors withdrawing over $274 million. Fidelity and ARK’s Bitcoin ETFs also faced sizable withdrawals, totaling approximately $150 million each.
Bitcoin experienced difficulties, but some alternative coins drew modest investments. Ethereum took the lead with $13 million in investments, fueled by the SEC’s recent approval of Ether-based ETFs. LIDO and XRP also received inflows worth $2 million and $1 million respectively.
In spite of the recent influxes, Ethereum’s value hasn’t gone unaffected. The second largest cryptocurrency in terms of market cap has taken a hit, losing nearly 8% over the past week and is now priced around $3,500.
Among all the countries, the United States had the largest outflow amounting to $565 million. On the other hand, Canada, Switzerland, and Sweden recorded negative flows as well. In contrast, Germany experienced an inflow of $17 million.
Weekly trading volumes were relatively low at $11 billion, which is below the typical $22 billion mark in 2023. Nevertheless, this amount signifies a noticeable rise compared to the $2 billion weekly average seen in 2022.
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2024-06-18 05:40