The cryptocurrency market experienced a significant shift as U.S. stock funds saw a weekly outflow of $22 billion, marking the largest outflow since December 2022. Concurrently, the digital asset sector, particularly Bitcoin ETFs, faced a challenging period with record outflows. Analysts, including Bloomberg's Eric Balchunas, attribute the substantial outflows, notably from Grayscale's Bitcoin ETF (GBTC), to bankruptcies within the digital asset industry. The past week saw Bitcoin ETFs endure net outflows, with Grayscale's GBTC experiencing a notable $2 billion outflow. This period of outflows, particularly a $942 million exodus from digital asset investment products, ended a seven-week streak of inflows. The outflows were primarily linked to the liquidation of GBTC shares by Genesis amid its bankruptcy proceedings, contributing to a total of approximately $3.9 billion in GBTC sales. Despite these challenges, there is anticipation that ETF flows may turn positive, with a focus on the potential stabilization of the market.