Top Highlights
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Significant Outflows: The crypto market has witnessed over $1.7 billion in outflows from Bitcoin and Ethereum ETFs in just one week, contributing to a total of $6.4 billion in five weeks.
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Record-Breaking Streak: CoinShares reports that crypto investment products experienced their longest outflow streak since 2015, enduring 17 consecutive days, leading to a $48 billion decrease in total assets under management.
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Major Withdrawals: The U.S. spot Bitcoin ETF market specifically saw nearly $1 billion in outflows last week, with BlackRock’s IBIT and Fidelity’s FBTC being the most affected, recording losses of $383 million and $316 million, respectively.
- Ethereum ETF Declines: U.S. spot Ethereum ETFs have also continued their outflow trend, losing $189 million last week, primarily due to significant withdrawals from BlackRock’s ETHA and Fidelity’s FETH, as the market struggles to regain previous price levels.
Bitcoin and Ethereum Funds Face Significant Outflows
Last week, Bitcoin and Ethereum exchange-traded funds (ETFs) experienced notable outflows, reflecting continued challenges in the crypto market. Specifically, funds tracking these digital assets reported withdrawals exceeding $1.2 billion across multiple countries, including the United States, Switzerland, and Canada. Additionally, total outflows from various digital asset products reached $1.7 billion, contributing to a five-week total of more than $6.4 billion in withdrawals.
Notably, the U.S. spot Bitcoin ETF market bore the brunt of these declines, with over $980 million in outflows reported. A recent report from CoinShares highlighted that Bitcoin investment products recorded their 17th consecutive day of outflows. This marks the longest negative streak since data became available in 2015. The combination of price drops and sustained withdrawals has led to a significant decrease of $48 billion in total assets for digital asset investment products.
BlackRock’s IBIT ETF witnessed the largest losses, with outflows amounting to $383 million. Fidelity’s FBTC followed closely, with $316 million in withdrawals. Despite occasional inflows, these were insufficient to counterbalance the large outflows. For example, from March 10 to 14, the U.S. spot Bitcoin ETFs recorded only one day of inflow, illustrating the prevailing negative trend.
Meanwhile, Ethereum funds also felt the pressure, marking a streak of outflows that began on March 5. Last week alone, these funds lost $189 million. BlackRock’s ETHA led this decline, with outflows exceeding $63 million. Fidelity’s FETH also contributed significantly, reporting withdrawals over $61 million. Despite recording two brief days of inflow, each amounting to less than $1.5 million, the funds could not offset overall losses.
As both Bitcoin and ether struggle to reclaim critical price points of $90,000 and $2,000, respectively, the ongoing outflows raise questions about the future development of cryptocurrency technology and its adoption. Investors remain cautious, yet the resilience of the crypto sector continues to draw interest. Moving forward, market participants are keenly watching for potential recovery and innovation within this rapidly evolving landscape.
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Disclaimer
This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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