Key Notes
- Digital asset investment products have recorded $223 million in outflows after 14 weeks of inflows.
- Only Bitcoin (BTC) outflows amounted to $404 million and impacted the entire market.
- BlackRock’s IBIT saw weekly inflows of $749 million, further extending its dominance in the ETF market.
After 14 consecutive weeks of inflows, digital asset investment products have recorded $223 million in crypto outflows. This sudden retracement is believed to be a reaction to the hawkish Federal Reserve signals and stronger-than-expected United States economic data.
Bitcoin Leads Crypto Asset Investment Products Outflows
CoinShares recently published the 245th volume of its “Digital Asset Fund Flows Weekly Report.”
According to this document, the total outflows from digital asset investment products amounted to $223 million by the end of the week. This marks the first outflow that this asset class has recorded in the last 15 weeks.
The week started on a good note, with about $883 million in inflows, but it wasn’t long before the trend reversed. Unfortunately, the outflows from the latter half of the week overpowered the earlier positive sentiment. Of all cryptocurrencies, flagship Bitcoin BTC $114 405 24h volatility: 0.3% Market cap: $2.28 T Vol. 24h: $24.77 B led the outflows, losing as much as $404 million to the bear momentum.
Considering that the market downturn is attributed to a series of better-than-expected economic data from the US, including the hawkish FOMC meeting, the reaction of this coin reflects its high sensitivity to monetary policy.
On the other hand, Ethereum ETH $3 571 24h volatility: 2.2% Market cap: $430.74 B Vol. 24h: $19.56 B , the second-largest cryptocurrency by market cap, continued its inflows trend. Precisely, it registered about $133 million in inflows, completing a trend of 15th straight week of inflows.
The likes of Ripple Labs-associated XRP XRP $3.01 24h volatility: 4.5% Market cap: $177.97 B Vol. 24h: $5.48 B , Solana SOL $163.6 24h volatility: 0.9% Market cap: $88.00 B Vol. 24h: $4.21 B , and Cardano ADA $0.74 24h volatility: 2.2% Market cap: $26.77 B Vol. 24h: $969.81 M also attracted notable inflows. Coincidentally, these digital assets are currently in the ‘green’ in terms of price. According to CoinMarketCap data, XRP is trading at $3 after securing a 5% gain in 24 hours.
SOL price was trading at $163.09 and ADA at $0.7393, with a 1.23% and 2.23% increase, respectively. Bitcoin is also trading at $114,446.03, corresponding with a 0.7% rally within the last 24 hours.
BlackRock IBIT Continues to Dominate ETF Market
BlackRock’s iShares Bitcoin Exchange Traded Funds (IBIT) in the US secured up to $749 million in weekly inflows. This further reiterates its position as a leading ETF in the broader market.
In about 18 months, the spot Bitcoin ETFs in the US have gained massive traction. However, much of the euphoria surrounds the BlackRock version of this fund.
As of mid-July, IBIT had successfully crossed $80 billion, with total holdings reaching above 706,000 BTC. This stellar record gave it the tag of the fastest-growing ETF of its kind. More interesting is the fact that it has surpassed even traditional ETFs.
It took SPDR Gold Shares ETF (GLD), the largest gold ETF by assets, more than 15 years to achieve a similar milestone.
Furthermore, its 700,000 BTC in holdings is more than Strategy’s total Bitcoin stash by about 80,000 BTC. The Michael Saylor-led business intelligence and software firm recently pushed its total Bitcoin holding to 628,791 units with an additional acquisition of 21,021 BTC. The purchase was capped at $74.26 billion at an average purchase price of $117,256 per BTC.
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