New York, NY: Investors in the cryptocurrency market saw a sharp shift last week as nearly $1 billion was withdrawn from digital asset investment products. This significant outflow comes after a sustained period of gains in the market.
According to a recent report from CoinShares, a total of $942 million left funds that provide exposure to major cryptocurrencies like Bitcoin, Ethereum, Solana, and Cardano. The hesitation among investors was driven by a notable decline in Bitcoin’s price, which experienced a crash following a recent peak. Despite struggling to surpass previous highs, Bitcoin managed to break through the $70,000 mark earlier this week.
The focus primarily remained on Bitcoin, with substantial amounts of money exiting Grayscale’s newly converted exchange-traded fund, GBTC. Investors have been redeeming shares from the ETF since its transition from a closed-end fund back in January. However, cash still flowed into other Bitcoin ETFs, including those offered by BlackRock and Fidelity.
In Europe, funds providing exposure to alternative cryptocurrencies also experienced significant outflows during the same period. Prior to last week’s withdrawals, investors had been injecting funds into crypto products for seven consecutive weeks. Newly approved spot Bitcoin ETFs, authorized by the Securities and Exchange Commission, have been particularly popular among investors.
Bitcoin’s current price sits at $70,644, indicating a 7.5% increase in the past 24 hours but still below its recent all-time high. This shift in investor behavior reflects a cautious approach to cryptocurrency investments following a period of heightened market activity.