Last week marked another significant downturn for global crypto investment products managed by industry giants like Ark Invest, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, as revealed in CoinShares' latest report. The collective net outflows totaled a staggering $251 million, extending a troubling streak of four consecutive weeks of outflows.

This persistent trend has now surpassed the $1 billion mark, with the majority of the outflows originating from U.S.-based funds. Notably, these funds witnessed a massive $504 million in net outflows in the previous week alone, overshadowing the comparatively modest $307 million of net inflows into recently launched Hong Kong spot bitcoin and ether exchange-traded funds.

The impact of this downward trend was not limited to the United States, as funds based in Switzerland, Canada, and Germany also experienced significant net outflows, amounting to $9.8 million, $9.6 million, and $7.3 million, respectively.

US Spot Bitcoin ETFs Face Unprecedented Challenges

The woes continued for U.S. spot bitcoin ETFs, which faced one of their most challenging weeks since their launch in January. With a total net outflow of $433 million last week, punctuated by a record-breaking daily net outflow of $563.7 million on Wednesday, these ETFs encountered substantial turbulence. James Butterfill, CoinShares' Head of Research, attributed this downturn to automatic sell orders triggered as the price of bitcoin fell below the estimated average purchase price of $62,200 per bitcoin.

However, amidst the turmoil, there were glimmers of hope. Friday saw a partial turnaround, with $378.3 million added across the funds. Notably, Grayscale's converted GBTC ETF experienced $63 million in net inflows for the first time, marking the end of a 78-day streak of outflows since its trading debut on January 11. This positive momentum carried into the following week, with GBTC generating $3.9 million of a total net inflow of $217 million on Monday.

Bitcoin Dominates Global Outflows, Ether Shows Resilience

Despite the overall negative sentiment, bitcoin continued to dominate the global crypto market, contributing $284 million to the weekly net outflows. However, it was the only digital asset investment product to record outflows last week. In contrast, ether-based funds broke a seven-week outflow streak, adding $30 million in net inflows. Additionally, investment products tied to Avalanche, Cardano, and Polkadot saw minor net inflows of $0.5 million, $0.4 million, and $0.3 million, respectively, signaling resilience in the face of market uncertainty.