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
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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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
$3,630.65
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$205.593
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
$2.31901
The XRP Ledger is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Polkadot
$7.65382
Polkadot development is on track to deliver the most robust platform for security, scalability, and innovation.
Litecoin
$108.115
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.