Investment products for digital assets saw cash out last week reaching $147 million. Specific attention was paid to Bitcoin ETFs which observed $159 million of redemptions during the increase of tensions in the Middle East.
Crypto Assets See Outflows Led by Bitcoin ETFs
This $147 million fell out of the investment products in the cryptocurrency market last week, following a three-weekly influx of nearly $2 billion, the CoinShares’ weekly report indicates.
The outflows were strongest in the United States, where $209 million were withdrawn. Other countries such as Germany and Hong Kong recorded negative flows of $8.3 million and $7.3 million respectively. But an increased influx was there in Canada ($43 million) and Switzerland ($35 million).
In the Bitcoin ETFs, there was a net outflow of $159 million. At the same time, there were $2.8 million of inflows into short-Bitcoin ETFs – in other words, some investors were hedging against uncertainties in the market.
They identified geopolitics as the probable cause for the high outflows, though earlier attributing the U.S. unemployment rate decline, the outflows occurred in early October when Iranian hostilities against Israel escalated, hence was a probable reason for the selloff.
Nevertheless, Bitcoin has performed 1% in the last 24 hours and is near $63K. But it continues to be in the negative on the weekly chart as well.
Ethereum & Solana ETFs See Mixed Results
As for Ethereum, there was a growing number of outflows worth $29 million after the previous week’s inflows. On the other hand, c received $5.3 million, while multi-asset crypto products posted a $29 million net inflow.
There is, however, increasing demand for the U.S. spot Bitcoin ETFs even after last week’s dip. CryptoQuant data shows that US spot BTC ETFs shifted from net selling 5k Bitcoin on 02-Sep to net buying 7k BTC by the end of Sep.
Bitcoin, Altcoins, Stablecoins FAQs
What is Bitcoin?
According to the market capitalization, Bitcoin is the largest cryptocurrency. Cryptocurrency works as a virtual money for person-to-person business without any mediator present.
What are Altcoins?
Altcoins are any coins that are not Bitcoin. Some consider Ethereum as a non-altcoin, especially with its great importance in the crypto industry. Other such cryptocurrencies, including Litecoin, are typically derived as forks of Bitcoin, providing different versions of the same protocol.
What are Stablecoins?
Stablecoins are cryptocurrencies that are anchored to stable assets such as the U.S. dollar and seek to have a more stable value than floating between zero and a volatile value that is usually significantly higher. They are used to hedge related risks in the crypto market and are seen as vehicles for converting traditional to digital investments.
What is Bitcoin Dominance?
The following chart depicted below shows the Bitcoin dominance that calculates the ratio of total market capitalization that has Bitcoin. In particular, it shows the number of shares holding a high dominance during bull runs, suggesting that users prefer BTC during these processes, while a drop results in altcoin activities, which may lead to altcoin booms.
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