Between March 16 and 22, cryptocurrency investment products experienced an outflow of $942 million following a record inflow of $2.92 billion. This is according to a report by CoinShares.
Earlier, a positive trend had been observed for seven consecutive weeks, during which $12.3 billion flowed into these instruments. For comparison, the entire year of 2021 saw $10.6 billion in inflows.
Trading volume reached $28 billion after a record $43 billion the previous week.
The primary driver of the negative trend was the $2 billion outflow from Grayscale’s GBTC, which exceeded the net inflows to its competitors ($1.1 billion).
As a result, market participants withdrew a record $904 million from bitcoin-related instruments following a historic inflow of $2.86 billion the week before.
“The recent price correction caused investor hesitancy, leading to significantly lower inflows into new ETFs in the US,” commented specialists.
Combined with the price rollback, the volume of digital assets under management decreased by $10 billion, to $88.2 billion. The previous week, the metric had momentarily exceeded $100 billion.
From structures allowing short positions on the leading cryptocurrency, clients withdrew $3.7 million after a year-high investment of $26 million in the previous seven days.
Outflows from Ethereum funds increased from $13.9 million to $34.2 million. Investors withdrew $5.6 million and $3.7 million from Solana and Cardano-based instruments, respectively.
Products based on Polkadot, Avalanche, and Litecoin saw inflows of $5 million, $2.9 million, and $2 million, respectively.
Back in JPMorgan, bitcoin was reported to have entered an overbought state.
Goldman Sachs noted a resurgence of interest in digital asset-related products among its clients.