The cryptocurrency market lost a record $ 2.9 billion in a week

Last week, the cryptocurrency market experienced a serious correction, which led to an outflow of $ 2.9 billion from exchange-traded products (ETPs). This is the third week in a row that investors have been withdrawing funds, and the total losses for this period have exceeded $ 3.8 billion, according to CoinShares.

The main reasons for the market’s decline were a hacker attack on the Bybit exchange, which resulted in the theft of $ 1.5 billion, as well as the US Federal Reserve’s tough rhetoric on monetary policy. According to CoinShares analyst James Butterfill, this provoked massive profit-taking and a decline in investor confidence in crypto assets.

Bitcoin BTC $85,128.68 Bitcoin 0.96% Market capitalization $1.69 trillion VOL. 24 hours $1.71 billion topped the list of assets from which funds were withdrawn, with an outflow of $ 2.6 billion in just one week. Overall, since the beginning of the month, withdrawals from Bitcoin ETPs have reached $ 3.2 billion. At the same time, short bitcoin ETPs showed a small inflow of $ 2.3 million, which indicates that some investors are interested in playing the downside.

Ethereum ETH $1,881.26 Bridged Ether (StarkGate) 0.00% Market capitalization $0.17 billion VOL. 24 hours $0.8 billion also suffered significant losses: $ 300 million was withdrawn from its ETPs during the week. However, the monthly balance for Ethereum remains positive, with a net inflow of $ 490.3 million. At the same time, some altcoins showed better dynamics. For example, Sui (SUI) attracted $ 15.5 million in investments, andreceived an additional $ 5 million.

This correction also affected the total value of assets under management of cryptocurrency ETPs, which fell to $ 138.8 billion, which is significantly lower than the January record of $ 173 billion.

Despite the massive outflows, the situation began to change by the end of the week. On Friday, February 28, outflows from spot bitcoin ETFs stopped. However, BlackRock iShares Bitcoin Trust (IBIT) recorded record outflows of $ 1.3 billion since its launch. Nevertheless, since the beginning of the year, IBIT has maintained a positive balance of $ 3.2 billion and has $ 51 billion in assets under management.

The only issuer to record positive inflows was ProShares, which added $ 76 million over the week. Total inflows into ProShares for the year reached $ 349 million, making it the second largest company in the cryptocurrency ETF market after BlackRock.