Last week’s market correction spurred $942 million outflow from investment products Last week’s market correction spurred $942 million outflow from investment products
The broader crypto market dip also resulted in a substantial $10 billion drop in crypto investments AUM .
2 min read
Updated: Mar. 25, 2024 at 3:51 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto-related investment products experienced a downturn after a streak of record inflows, with a total outflow of $942 million reported last week, according to CoinShares‘ latest weekly report.
This marks the first instance of outflows in the past eight weeks, signaling the conclusion of an impressive seven-week inflow totaling $12.3 billion.
Market correction impacts crypto products
The substantial outflows observed coincide with a price correction in the crypto market, with Bitcoin’s price dropping to a multi-week low of $60,976 and other digital assets following suit.
James Butterfill, CoinShares’ research head, explained that this market correction slashed $10 billion from the total assets under management (AuM) for crypto-related investment products. Nevertheless, the current balance of $88 billion stands notably above previous market cycle levels.
Furthermore, the overall trading volume for these investment products declined to $28 billion compared to over $40 billion recorded in the preceding two weeks.
Notably, this negative market performance engendered bearish sentiments among investors, resulting in diminished inflows of just $1.1 billion into the new spot Bitcoin ETFs in the US.
As a result, the modest inflows could not offset the substantial $2 billion outflows recorded from Grayscale‘s Bitcoin Trust (GBTC). Consequently, Bitcoin-related products ended the week with a negative net flow of $904 million.
Ethereum also sustained outflows for the second consecutive week, with $34.2 million exiting the asset. This brings its month-to-date flow to a negative $46.2 million.
Other products, such as Multiassets and Solana, also experienced outflows of $7.3 million and $5.6 million, respectively.
Meanwhile, the negative sentiment reverberated globally, with products in various regions, including the US, Germany, Switzerland, Hong Kong, and Sweden, all witnessing outflows. However, Canada and Brazil experienced minor inflows of $8.4 million and $9 million, respectively.
Interestingly, even short Bitcoin positions experienced an outflow of $3.7 million last week.
On a brighter note, lesser-known cryptocurrencies such as XRP, Polkadot, Avalanche, and Litecoin saw modest inflows, indicating a positive week for these assets amidst the broader market downturn.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
XRP 
Polkadot 
Litecoin 
CoinShares 
Grayscale Investments 
Grayscale Bitcoin Trust Author 
Oluwapelumi Adejumo
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,076.11
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$218.274
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
XRP
$1.05408
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Polkadot
$5.71927
Polkadot development is on track to deliver the most robust platform for security, scalability, and innovation.
Litecoin
$90.6056
Litecoin is a peer-to-peer Internet currency that enables instant, near-zero cost payments to anyone in the world.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.