According to U.Today, Bitcoin (BTC) is leading the outflows among digital asset investment products for the third consecutive week. The digital asset ecosystem, including spot crypto ETFs, has witnessed outflows amounting to $435 million in the past week. This is the highest volume of outflows the industry has seen since March, indicating a decline in the enthusiasm of ETF investors that was prevalent during the initial approval of spot Bitcoin ETF.
A significant portion of this outflow, $388 million, originates from the United States, despite its year-to-date inflows still standing at a record $13.6 billion. Exchange-traded products (ETPs) are bearing the impact of this bearish sentiment, with a substantial drop in trading volume. Specifically, ETP trading volume decreased from $18 billion to $11.8 billion within a week.
Spot Bitcoin ETFs like BlackRock's IBIT have long maintained a streak of inflows, but this was abruptly interrupted after 71 days last week by outflows, indicating a significant drop in demand. Other products, including Grayscale’s GBTC, also experienced outflows. Over the past week, Bitcoin's price fell significantly, dropping to as low as $64,000 and further declining by 6% to its current trading price of $62,461.12. This has raised doubts among short-term investors.
Grayscale spot Bitcoin ETF is leading the outflows, recording its lowest outflow in nine weeks at $440 million. Despite the apparent drop in demand, new Bitcoin issuers have driven inflows to the niche. Around two weeks ago, inflows peaked at $256 million but fell to $226 million last week.
The numerous outflows from these Bitcoin-linked products have resulted in a drop in altcoins. Ethereum (ETH) is also experiencing an increase in outflows, while other altcoins like Solana (SOL), Litecoin (LTC) and Chainlink (LINK), continue to see inflows of $4 million, $3 million and $2.8 million, respectively.