Digital Asset Investment Products Experience Significant Outflows
Last week, digital asset investment products witnessed substantial outflows, reaching a total of $500 million. CoinShares, an analytics company, released a report on the flow of funds in cryptocurrency-based investment products from Jan. 20 to Jan. 26, 2024. The report highlighted Grayscale Investments’ spot Bitcoin (BTC) ETF as a central player. During the week, the crypto fund experienced outflows exceeding $2.2 billion, with total withdrawn assets surpassing $5 billion.
BlackRock and Fidelity Investments See Significant Inflows
Despite the outflows from various crypto funds, BlackRock’s investment product continues to attract significant inflows of funds, totaling $744 million over the past week. Fidelity Investments’ crypto fund also received substantial financial injections, amounting to $643 million, securing second place in this regard.
Inflow of Funds into Spot Bitcoin ETFs
The report reveals that spot Bitcoin ETFs recorded an inflow of $1.84 billion, with total investments reaching $5.94 billion since their launch on January 11, 2024. The primary outflows occurred in the USA ($409 million), Switzerland ($60 million), and Germany ($32 million). However, Brazil experienced a net inflow of assets totaling $10.3 million, along with France, which saw an inflow of $100,000.
Bitcoin Dominates Outflows, Ethereum-based Products Experience Losses
Notably, the movement of funds during this period was primarily associated with Bitcoin. The first cryptocurrency accounted for an outflow of $479 million, while short Bitcoin positions saw an inflow of $10.6 million. Additionally, Ethereum (ETH)-based exchange products witnessed an outflow of $39 million. Other altcoin-based crypto funds also experienced losses.
CoinShares’ Previous Report Highlights Inflows and Outflows
In a previous report, CoinShares analysts noted that capital inflows into cryptocurrency investment products amounted to $21 million. However, issuers with higher fees suffered from the launch of spot Bitcoin ETFs in the United States on Jan. 10, 2024. As a result, these funds experienced outflows amounting to $2.9 billion, while the new instrument attracted $4 billion in investments.
Hot Take: Digital Asset Investment Products Witness Significant Outflows
Last week, digital asset investment products experienced significant outflows amounting to $500 million, according to a report by CoinShares. The report highlights Grayscale Investments’ spot Bitcoin ETF as a central player in the flow of funds. Despite the outflows from various crypto funds, BlackRock’s investment product attracted substantial inflows of $744 million over the past week. Spot Bitcoin ETFs recorded an inflow of $1.84 billion, with Bitcoin dominating the outflows at $479 million. Ethereum-based exchange products also saw an outflow of $39 million. CoinShares’ previous report emphasized that issuers with higher fees suffered from the launch of spot Bitcoin ETFs, resulting in outflows of $2.9 billion.
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