Solana, Polygon and Litecoin are some altcoins that attracted institutional investors this past week, despite the market seeing more than $584 million pulled from digital asset investment products.
Over the past two weeks, the digital asset investment products market has recorded outflows of over $1.2 billion, CoinShares revealed in a report.
Bitcoin and Ethereum lead the outflows, which have come as BTC price struggled with downside pressure since its recent rejection in the $71k area.
Bitcoin, Ethereum see over $688 million in outflows
According to details shared in asset manager CoinShares’ latest weekly report, institutional investors continued to show bearish behavior with a second consecutive week of outflows. In the one week, crypto exchange-traded products (ETPs) saw outflows of $584 million, with most of these offloaded in the US market.
Specifically, the biggest outflows were for Bitcoin, which saw more than $630 million exiting Bitcoin ETPs across the market. Another $58 million left Ether products to bring outflows for the top two cryptocurrencies to over $688 million.
“We believe this is in reaction to the pessimism amongst investors for interest rate cuts by the FED this year,” CoinShares head of research James Butterfill wrote.
He noted that these outflows highlight the correction that’s underway in the market.
Low volumes as spot Bitcoin ETFs record outflows
Over the previous week, digital asset investment products recorded their lowest volumes since the trading debut of multiple spot Bitcoin ETFs following the US Securities and Exchange Commission (SEC)’s approval in January. The total volume last week was just $6.9 billion, according to the report.
US spot Bitcoin ETFs recorded over $544 million in outflows last week, with analysts at crypto exchange Bitfinex pointing to “arbitrage unwinding rather than true sentiment” as key catalyst.
Bitcoin price dropped below $62,000 on Monday as investors and traders reacted to an announcement from Mt.Gox that repayments to creditors will start in July. Miners selling has been another downward catalyst for BTC.
Ethereum has also declined to below $3,200, ahead of a potential approval of Ether spot ETFs for trading by next week.
Solana, Litecoin see inflows
Despite the massive outflows for BTC and ETH, there was some interest in SOL, LTC and MATIC products.
Per the CoinShares report, several altcoins saw inflows as Bitcoin and Ethereum registered outflows. These came after the sector recorded significant drawdowns in recent weeks, which currently sees many altcoins down more than 10% declines over the week.
Solana and Litecoin are both 11% down in this time frame, while Polygon has shed over 8%.
The weakness aside, inflows into Solana was $2.7 million. Meanwhile, Litecoin and Polygon saw $1.3 million and $1 million respectively.
“Multi-asset products saw $98 million in inflows to “suggest investors see the weakness in the altcoin market as a buying opportunity,” Butterfill noted.
