Bitcoin (BTC) and Ethereum (ETH) Lead Digital Asset Outflows Amid Broad Market Sell-Off

Digital asset investment products experienced substantial outflows for the first time in four weeks, totaling $528 million, according to CoinShares. This trend is attributed to fears of a potential recession in the United States, geopolitical concerns, and broader market liquidations across various asset classes.

Bitcoin and Ethereum Lead the Outflows

Bitcoin (BTC) saw significant outflows amounting to $400 million, marking the first outflow after five consecutive weeks of inflows. Ethereum (ETH) also faced outflows totaling $146 million, bringing the net outflows since the launch of ETFs in the U.S. to $430 million. Notably, the positive inflows of $430 million from newly launched U.S. ETFs were overshadowed by $603 million in outflows from the incumbent Grayscale trust, along with minor outflows from European ETPs.

Regional Outflows and Trading Volumes

The majority of outflows were concentrated in the U.S., amounting to $531 million. Germany and Hong Kong also experienced outflows of $12 million and $27 million, respectively. Conversely, Canada and Switzerland saw the price weakness as a buying opportunity, with inflows of $17 million and $28 million, respectively. Trading volumes in ETPs totaled $14.8 billion last week, representing a lower-than-average proportion of the total market at 25%. The price correction from Friday’s close resulted in $10 billion being wiped off the total ETP Assets under Management (AuM).

Other Digital Assets and Blockchain Equities

Short-Bitcoin products saw the first measurable inflows since June, totaling $1.8 million. Blockchain equities continued to see outflows, with last week recording an additional $18 million in outflows, in line with broader tech-related ETFs.

For more detailed insights and data, the full report can be accessed on the CoinShares blog.