Benzinga - by Murtuza Merchant, Benzinga Staff Writer.
The cryptocurrency investment landscape has been marked by a concerning trend in recent weeks, with significant outflows recorded across major Bitcoin (CRYPTO: BTC) spot ETFs.
What Happened: According to data from SoSoValue, notable outflows were reported on Monday, with ARK 21Shares‘s ARKB (CRYPTO: ARKB) experiencing a single-day net outflow of $31.34 million, surpassing Grayscale‘s GBTC (OTC:GBTC) which saw a reduction of $24.66 million. The total net outflow for the day was $51.53 million.
Meanwhile, BlackRock's iShares Bitcoin Trust (NASDAQ:IBIT) showed no movement, maintaining a stagnant flow for four consecutive days.
This pattern of withdrawals is part of a broader trend affecting digital asset investment products, which have seen outflows for three consecutive weeks, culminating in a total of $435 million—the largest since March this year.
Coinshares highlighted a stark drop in trading volumes, with ETPs falling to $11.8 billion last week from $18 billion the prior week, coinciding with a 6% decline in Bitcoin prices.
Also Read: Michael Saylor Summarizes Why MicroStrategy Is Superior To Bitcoin ETFs
Regionally, the majority of these outflows were concentrated in the U.S., which accounted for $388 million. Despite these recent losses, inflows for the year remain at a record high of $13.6 billion.
Grayscale alone accounted for $440 million in outflows, marking a slight improvement as the lowest in nine weeks.
On a slightly positive note, Germany and Canada experienced smaller outflows, and Switzerland and Brazil saw modest inflows.
Interestingly, while Bitcoin and Ethereum (CRYPTO: ETH) bore the brunt of the outflows, some diversity was observed in investor behavior towards altcoins.
Multi-coin investment products attracted $7 million in inflows, with individual assets like Solana (CRYPTO: SOL), Litecoin (CRYPTO: LTC), and Chainlink (CRYPTO: LINK) also experiencing positive movements.
This ongoing volatility and the shift in investment patterns underscore the evolving dynamics of the cryptocurrency market.
What’s Next: As industry leaders and investors seek to navigate these turbulent waters, Benzinga’s upcoming Future of Digital Assets event on November 19 offers a timely platform for discussion.
Read Next: FBI Issues Warning Against Unregistered Crypto Services Amid Privacy Concerns
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