CoinShares Points Recent $544 Million Outflow from Spot Bitcoin ETFs as a ‘Real Correction
CoinShares Points– U.S. Spot Bitcoin ETFs Experienced $544.1 Million in Net Outflows Last Week, Surpassing $1.1 Billion Over the Past Two Weeks.
According to CoinShares’ latest report, global digital asset investment products saw outflows totaling $584 million for the second consecutive week. Exchange-traded products also recorded their lowest trading volumes since the launch of U.S. spot Bitcoin ETFs in January, amounting to just $6.9 billion.
CoinShares’ Head of Research, James Butterfill, attributed the outflows to investor pessimism regarding potential interest rate cuts by the Federal Reserve this year. He added that the continued outflows indicate a ‘genuine correction’ is currently underway.
Bitcoin remained the central focus, while specific altcoin investment products diverged from the prevailing trend
Last week, crypto investment products based in the U.S. recorded the highest net outflows, totaling $475 million. Similarly, significant net outflows were observed in Canada, Germany, and Hong Kong. On the other hand, funds based in Brazil saw net inflows of $48.5 million, while Switzerland-based funds attracted $39 million in net inflows.
Ethereum-based investment products globally saw net outflows of $58 million, despite movements related to prospective issuers’ S-1 registration filings with the Securities and Exchange Commission last week ahead of a potential July 2 launch date.
However, several altcoins defied this trend, with Solana, Litecoin, and Polygon-based products attracting net inflows of $2.7 million, $1.3 million, and $1 million respectively. This suggests that ‘investors viewed weakness in the altcoin market as a buying opportunity,’ noted Butterfill.
Bitcoin is currently trading at $61,349, as reported by The Block’s bitcoin price page. The leading cryptocurrency by market cap has declined by 4.5% in the past 24 hours. This comes amid Monday’s confirmation from the Mt. Gox Rehabilitation Trustee that around $9 billion in bitcoin and bitcoin cash repayments will commence from July.
FAQs
What does the term authentic correction imply in the context of the crypto market?
In this context, an authentic correction suggests a genuine adjustment in market prices and investor behavior, likely influenced by broader economic factors or regulatory expectations.
How did CoinShares interpret the impact of the $544 million outflow from spot Bitcoin ETFs?
CoinShares viewed the substantial outflow as a clear indicator of market sentiment, reflecting cautious investor outlook amid uncertainties such as potential Federal Reserve actions and market volatility.
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