After nearly five months of uninterrupted inflows, Bitcoin and other crypto asset investment products recorded their first significant outflow, totaling $415 million.CoinShares highlighted this data in its latest weekly report on crypto investments, particularly the ETF market. The latest figure marks the end of an unprecedented streak of inflows that saw $29.4 billion poured into the sector following the U.S. election.Notably, the 19-week record of $29.4 billion post-November election surpassed the $16 billion recorded in the first 19 weeks following the launch of U.S. spot ETFs in January 2024. However, the inflow streak ultimately came to an end last week.According to CoinShares, the sudden reversal followed Federal Reserve Chair Jerome Powells hawkish tone during a Congressional meeting and higher-than-expected U.S. inflation data. Notably, these events spooked investors. The U.S. market bore the brunt of the withdrawals, with $464 million in outflows. Meanwhile, other regions remained resilient with positive flows. Specifically, Germany's crypto ETP market recorded inflows of $21 million, Switzerland saw $12.5 million, and Canada registered $10.2 million in inflows.Bitcoin and crypto inflow by countriesBitcoin and crypto inflow by countriesBitcoin Leads Losses While Solana and XRP Gain GroundAs interest rate expectations shifted, Bitcoin saw the largest weekly outflow at $430 million. Interestingly, the BTC market witnessed no corresponding increase in short-Bitcoin positions, which even observed $9.6 million in withdrawals. This suggests investors are pulling capital rather than hedging against further downside.Despite the broad retreat, altcoins saw continued investor interest. Solana recorded $8.9 million in inflows, leading the altcoin category. The next in line with the largest weekly inflow was XRP-based products, with $8.5 million. Sui investment products also registered a $6 million inflow.Blockchain Equities Maintain MomentumWhile digital asset products faced sell-offs, blockchain equities continued to attract investors. They saw $20.8 million in inflows, bringing year-to-date net inflows to $220 million. This indicates that some investors remain optimistic about the broader blockchain industry, even as crypto markets adjust to macroeconomic shifts.With Bitcoin struggling against macroeconomic pressures, the spotlight is now shifting to altcoins and blockchain stocks, which are holding investor interest in the volatile market.
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