In the latest market overview, investors pulled $5.1 million from digital asset funds last week, marking the ninth consecutive week of outflows. However, compared to the previous week’s $88 million, this number saw a significant decrease. This change could be attributed to the potential impact of BlackRock‘s Bitcoin ETF bid, which has brought some amount of stability to the market.
As we saw earlier this month, the cryptocurrency market was in turmoil due to high-profile SEC lawsuits targeting companies like Coinbase and Binance, which labeled several altcoins as securities, causing fear among investors. Despite these events, the outflows from crypto investment products slowed down. Over the past nine weeks, the total sum of fund withdrawals amounts to $423 million.
The BlackRock’s Bitcoin exchange-traded product (ETP) application last Friday reportedly led to $5 million in inflows, according to CoinShares Head of Research James Butterfill. Although not enough to offset outflows observed earlier in the week, this application may have provided slight support for the market.
Grayscale, the fund manager controlling the Grayscale Bitcoin Trust (GBTC), was responsible for over 85% of weekly inflows. They have been striving to convert their multi-billion-dollar flagship fund into a Bitcoin ETF, with GBTC shares closing up nearly 13% at $15.12 per share last Friday.
The outflows were primarily centered on Ethereum-tracking products, which saw $5 million withdrawn by investors. On the other hand, several altcoins experienced investors ‘buying the dip,’ with XRP receiving $1.1 million, Cardano and Polygon attracting $0.6 million and $0.2 million, respectively.
XRP’s value has been resilient, with a 4.7% gain over the past month despite Ripple’s ongoing legal battle with the SEC. Meanwhile, Cardano and Polygon experienced value drops over the past month, both affected by SEC lawsuits as alleged examples of securities trading on major exchanges.
The Federal Reserve’s hawkish statements signaling potential rate hikes haven’t helped in calming investor fears, Butterfill noted. Despite the uncertain environment, investors in countries like the United States and Germany contributed significant inflows to various funds, with $3.7 million and $2.7 million, respectively. Conversely, investors in Sweden and Switzerland withdrew $3.3 million and $5.8 million from digital asset funds.
Surprisingly, Hong Kong has yet to see notable inflows this year, in spite of its growing regulatory framework for the crypto industry. The current market overview shows a mix of optimism and caution, as investors weigh the potential of digital assets while keeping a close eye on regulatory developments.
Source: Decrypt
