The crypto market is experiencing a significant correction, with investors withdrawing $584 million from crypto-related investment products last week, according to CoinShares' latest report.

Global trading volumes for crypto ETPs reached their lowest levels since the US SEC approved several spot Bitcoin ETFs in January, totaling only $6.9 billion for the week. This decline follows the previous week's $600 million outflow, bringing the two-week total to nearly $1.2 billion.

James Butterfill, CoinShares' head of research, attributed this trend to investor pessimism about potential FED interest rate cuts this year.

Bitcoin and US lead outflows

Bitcoin investment products faced the largest outflows, totaling $630 million. US Bitcoin ETPs experienced six consecutive days of outflows, mainly from Grayscale Bitcoin ETF and Fidelity's FBTC. Canada also saw significant outflows of $109 million, followed by Germany and Hong Kong with $24 million and $19 million, respectively.

Conversely, Switzerland and Brazil recorded inflows of $39 million and $48.5 million, respectively, partially offsetting the overall outflows.

Investors with bearish sentiments also pulled about $1.2 million from short Bitcoin products. Ethereum joined the outflow trend, with its first withdrawals in weeks totaling around $58 million, reducing its month-to-date flow to about $23 million from $82 million.

Altcoins prove attractive

Despite major digital asset outflows, multi-asset investment products and some altcoins saw significant inflows. CoinShares reported that multi-asset products attracted over $98 million, while Solana, Litecoin, and Polygon received $2.7 million, $1.3 million, and $1 million, respectively.

Butterfill noted that these inflows indicate a new investor interest in altcoins, suggesting that investors see the weakness in the altcoin market as a buying opportunity.