CoinShares says 'true correction' underway after $544 million outflow from spot Bitcoin ETFs last week

U.S. spot Bitcoin exchange-traded funds witnessed a combined $544.1 million in net outflows last week, surpassing $1.1 billion over the past fortnight.

Globally, digital asset investment products witnessed outflows totaling $584 million for the second consecutive week, according to CoinShares’ latest report. The exchange-traded products also registered their lowest trading volumes since the U.S. spot Bitcoin ETFs launched in January at just $6.9 billion.

“We believe this is in reaction to the pessimism amongst investors for the prospect of interest rate cuts by the FED this year,” CoinShares Head of Research James Butterfill wrote , adding that the further outflows indicated a “true correction is underway.”

Bitcoin was the primary focus as select altcoin investment products bucked the trend

U.S.-based crypto investment products saw the largest net outflows last week, accounting for $475 million in total. Significant net outflows were also witnessed in Canada, Germany and Hong Kong. However, Brazil and Switzerland-based funds did manage $48.5 million and $39 million worth of net inflows, respectively.

Weekly crypto asset flows. Images: CoinShares .

Bitcoin was unsurprisingly the primary focus given the comparative size of the spot Bitcoin ETF market. Despite the negative sentiment, investors did not add to their short positions, however, with short Bitcoin products seeing $1.2 million in net outflows, Butterfill said.

Ethereum-based investment products also registered net outflows of $58 million globally, despite movement on prospective issuers’ S-1 registration filings with the Securities and Exchange Commission last week ahead of a potential July 2 launch date.

However, a range of altcoins bucked the trend, with Solana, Litecoin and Polygon-based products generating net inflows of $2.7 million, $1.3 million and $1 million, respectively, suggesting “investors saw the weakness in the altcoin market as a buying opportunity,” Butterfill added.

Bitcoin is currently trading for $61,349, according to The Block’s bitcoin price page . The largest cryptocurrency by market cap is down 4.5% over the past 24 hours, amid confirmation on Monday from the Mt. Gox Rehabilitation Trustee that around $9 billion in bitcoin and bitcoin cash repayments would commence from July.

Meanwhile, the GMCI 30 , representing a selection of the top 30 cryptocurrencies, is down 4% in the last 24 hours at 124.81.

BTC/USD price chart. Image: The Block/TradingView .

Earlier on Monday, CoinShares announced it had successfully sold its FTX claim, yielding a 116% recovery rate in fiat terms net of broker fees, resulting in a return of £31.3 million ($39.7 million) on a £26.6 million claim ($33.7 million).