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Digital Asset Investment Products Outflow
Digital asset investment products experienced a record outflow of $942 million from March 16 to 22, marking the end of a seven-week streak of substantial inflows totaling $12.3 billion. According to a report from CoinShares, trade turnover amounted to $28 billion, following a record-breaking $43 billion the previous week.
Primary Driver of Negative Shift
The primary driver behind this negative shift was the outflows from Grayscale’s GBTC (Grayscale Bitcoin Trust), which amounted to $2 billion, surpassing the net inflows into its competitors by $1.1 billion.
Total Volume of Crypto AUM Decrease
As a result of the outflows and the price retracement, the total volume of digital assets under management decreased by $10 billion, settling at $88.2 billion. Just a week prior, this metric had surpassed the $100 billion mark.
Outflows in Specific Cryptocurrencies
- Ethereum (ETH) funds saw outflows increase from $13.9 million to $34.2 million.
- Investors withdrew $5.6 million and $3.7 million from instruments based on Solana (SOL) and Cardano (ADA), respectively.
- Products tied to Polkadot (DOT), Avalanche (AVA), and Litecoin (LTC) experienced inflows of $5 million, $2.9 million, and $2 million, respectively.
Bitcoin ETFs Outflows
Bitcoin ETFs saw four consecutive days of outflows, with significant amounts exiting the funds, including nearly $359 million from the Grayscale Bitcoin Trust (GBTC) ETF.
Price Forecast and Optimism
Despite the recent slide in Bitcoin prices, investment firm Bernstein raised its year-end forecast for the cryptocurrency to $90,000. The firm also expressed optimism about cryptocurrency mining stocks, citing Bitcoin’s rise to around $74,000 and the positive response to new spot BTC ETFs.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
