Bitcoin, Ethereum See Over $688 Million in Outflows as Spot Bitcoin ETFs Record Low Volumes

Solana, Polygon and Litecoin are some altcoins that attracted institutional investors this past week, despite the market seeing more than $584 million pulled from digital asset investment products.

Institutional investors showed a preference for Solana, Polygon and Litecoin (LTC) over the past week, as evidenced by inflows into their respective exchange-traded products (ETPs). This occurred despite the broader digital asset investment product market experiencing outflows of over $584 million.

According to a report by CoinShares, Bitcoin and Ethereum led the outflows, which came amid pressure on BTC price from the downside following its recent rejection in the $71,000 zone.

Over the past two weeks, the digital asset investment products market has recorded outflows of over $1.2 billion, as reported by CoinShares.

Bitcoin and Ethereum saw outflows of over $688 million

As detailed in the latest weekly report by asset manager CoinShares, institutional investors exhibited a bearish stance with a second consecutive week of outflows. During the one-week period, crypto ETPs saw outflows of $584 million, with the majority of these being offloaded in the United States market.

Specifically, the largest outflows were for Bitcoin, with more than $630 million exiting Bitcoin ETPs across the market. Another $58 million left Ether products, bringing outflows for the top two cryptocurrencies to over $688 million.

“We believe this is in reaction to the pessimism amongst investors for interest rate cuts by the FED this year,” CoinShares head of research James Butterfill wrote in the report.

He noted that these outflows also highlight the correction that is underway in the market.

Low volumes as spot Bitcoin ETFs record outflows

Over the previous week, digital asset investment products recorded their lowest volumes since the trading debut of multiple spot Bitcoin ETFs following the U.S. Securities and Exchange Commission’s (SEC) approval in January. The total volume last week was just $6.9 billion, according to the report.

US spot Bitcoin ETFs recorded over $544 million in outflows last week, with analysts at crypto exchange Bitfinex pointing to “arbitrage unwinding rather than true sentiment” as the key catalyst.

Bitcoin price dropped below $62,000 on Monday as investors and traders reacted to an announcement from Mt.Gox that repayments to creditors will start in July. Miners selling has been another catalyst for BTC’s downside.

Ethereum has also declined to below $3,200, ahead of a potential approval of Ether spot ETFs for trading by next week.

Solana, Litecoin see inflows

Despite the massive outflows for BTC and ETH, there was some interest in SOL, LTC and MATIC products.

According to the CoinShares report, several altcoins saw inflows as Bitcoin and Ethereum registered outflows. These came after the sector recorded significant drawdowns in recent weeks, which currently sees many altcoins down more than 10% declines over the week.

Solana and Litecoin are both 11% down in this time frame, while Polygon has shed over 8%.

However, the weakness was not enough to deter institutional investors, with Solana seeing inflows of $2.7 million. Meanwhile, Litecoin and Polygon saw $1.3 million and $1 million, respectively.

“Multi-asset products saw $98 million in inflows to “suggest investors see the weakness in the altcoin market as a buying opportunity,” Butterfill noted.

News source：https://www.kdj.com/cryptocurrencies-news/articles/bitcoin-ethereum-outflows-spot-bitcoin-etfs-record-low-volumes.html

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