Crypto funds from asset managers such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares and 21Shares saw outflows totaling $126 million globally last week, according to the latest report from CoinShares.
These are the first outflows in three weeks – after a record outflow of almost $1 billion was recorded for the week ending March 22.
“Investors appear to be hesitant since positive price momentum has stopped,” James Butterfill, head of research at CoinShares. wrote. “Volumes increased slightly from $17 billion to $21 billion week over week, but ETP/ETF activity fell relative to the overall market, falling from 40% of total volumes on trusted exchanges over the past month to 31% last week. demonstrating this caution among investors.
Weekly crypto asset feeds. Pictures: Coin Shares.
Crypto Assets Fall Amid Geopolitical Tensions
Bitcoin 
BTC
+1.38%
fell 7.7% over the past week, and ether fell 10%, according to The Block’s pricing page. Meanwhile, the GMCI 30 Index – which represents the top 30 cryptocurrencies by market capitalization – fell 12% during the same period.
Most of the damage came Saturday after the Israeli military said Iran launched dozens of drones in an attack on the country. Bitcoin fell to $60,822 and ether to $2,850 before recovering.
The United Nations on Sunday issued a warning that the Middle East is “on the brink” of potentially devastating all-out conflict – with Israel vowing to “exact a price” on Iran after drone attack and missiles, while major powers have called for de-escalation.
Bitcoin is currently trading at $66,642 and Ether at $3,269. Solana led the rally among major cryptocurrencies, gaining 8% in the past 24 hours to trade at $154, according to The Block’s price page – after also falling more significantly over the weekend -end.
Fidelity’s spot Bitcoin ETF sees no daily flows for the first time, leaving BlackRock and Grayscale to fight
US Bitcoin spot exchange-traded funds contributed significantly to the global weekly figure, with net outflows of $82.5 million leaving the funds after three out of five negative days last week.
US-based crypto investment products saw aggregate weekly outflows of $145 million, with Bitcoin-based funds contributing $110 million to global outflows. In contrast, Germany-based funds saw inflows worth $29 million last week.
Fidelity’s Bitcoin Spot ETF recorded zero flows on Friday for the first time since the funds launched on January 11, leaving BlackRock and Grayscale battling to become the only ETFs to record flows for the day.
Ultimately, the $111.1 million in inflows into BlackRock’s IBIT product were insufficient to offset the $166.2 million in outflows from Grayscale’s higher-fee GBTC fund, resulting in resulted in net outflows of $55.1 million on Friday. Total net inflows currently stand at $12.5 billion.
Bitcoin spot ETF volume, however, rose to its highest level in three weeks, generating $4.6 billion in trades on Friday as market volatility began.
Short-term Bitcoin products broke a three-week outflow streak, seeing minor inflows of $1.7 million – “probably taking advantage of recent price weakness,” Butterfill said.
Meanwhile, ether-based funds were hit the hardest last week, with outflows worth $29 million for the fifth consecutive week. Solana products also saw cash outflows of $3.6 million. However, some altcoin-related funds bucked the trend, with Decentraland, Basic Attention Token, and Lido seeing inflows of $4.9 million, $2.9 million, and $1.8 million, respectively.
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