Crypto Funds See $500 Million in Net Outflows Last Week
Crypto funds managed by companies such as BlackRock, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares experienced net outflows totaling $500 million globally last week, according to a report by CoinShares. The report highlights that Grayscale’s high-fee spot bitcoin exchange-traded fund (GBTC) continued to dominate the outflows, with $2.2 billion leaving the fund. However, recent data suggests that the impact is starting to subside as daily outflows have decreased consecutively throughout the week.
Spot Bitcoin ETFs Attract Inflows While GBTC Sees Outflows
In contrast to GBTC’s outflows, nine new spot bitcoin exchange-traded funds (ETFs) saw inflows of $1.8 billion last week. Leading the inflows were BlackRock’s IBIT with $744.7 million and Fidelity’s FBTC with $643.2 million. Since their launch on January 11th, these nine ETFs have collectively received approximately $5.8 billion in inflows, while GBTC has experienced $5 billion in outflows. This has resulted in a total net inflow of $759.4 million.
Bitcoin Price Falls Despite Positive Flows
The price of Bitcoin has dropped about 14% from its peak of $49,000 on the day the spot bitcoin ETFs were launched to its current price of $42,252. CoinShares’ James Butterfill believes that much of this price decline can be attributed to bitcoin seed capital being acquired prior to January 11th.
Bitcoin Dominates with US Market Leading
Bitcoin investment products saw net outflows of $479 million, while short-bitcoin funds attracted inflows of $10.6 million. Most altcoin-based funds also experienced outflows, with Ether investment products losing $39 million and Polkadot and Chainlink funds seeing losses of $0.7 million and $0.6 million respectively. However, Solana products bucked the trend with $3 million in inflows. Blockchain equities continued to see inflows for the tenth consecutive week, adding $17 million.
Regionally, US-based funds had net outflows of $409 million, while Switzerland and Germany saw outflows of $60 million and $32 million respectively. Brazil had the largest net inflows of $10.3 million.
Hot Take: Outflows from Grayscale Likely Influenced Market
The substantial outflows from Grayscale’s ETF in the US totaling $5 billion likely prompted further outflows from other regions, according to James Butterfill of CoinShares. These recent price declines can be attributed to the impact of Grayscale’s outflows on the market.
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