Crypto Investment Products See $424 Million Net Outflow This Week
CoinShares data reveals that crypto investment products experienced a net outflow of around $424 million since Monday. However, newly issued US spot bitcoin ETFs have seen inflows of $2 billion, according to James Butterfill, CoinShares’ Head of Research.
Shift Towards Cheaper US Funds
Funds like ProShares Bitcoin Strategy ETF and Grayscale’s GBTC fund have witnessed net outflows this week. This shift is occurring as institutional investors turn their attention to recently approved spot bitcoin ETFs.
Top Five Crypto Flows Dominated by Spot Bitcoin ETFs
Among the top five crypto flows by provider based on year-to-date amount, four are comprised of newly issued spot bitcoin ETFs.
Record-Breaking Trading Volume for Spot Bitcoin ETFs
The first day of trading for spot bitcoin ETFs generated nearly $4.6 billion in buying and selling. This volume is the largest on record, surpassing the previous high of $4.3 billion in May 2021.
Subsequent Trading Days Show Lower Volume
The second and third days of trading did not match the performance of the first day for spot bitcoin ETFs. However, this is a common pattern and does not indicate a decline in interest.
$10 Billion Trading Volume within Three Days
In just three days, spot bitcoin ETF trading volume has exceeded $10 billion. This milestone is significant compared to the launch of 500 ETFs in 2023, which collectively generated $450 million in trading volume on Tuesday.
Hot Take: Crypto Investment Products Experience Net Outflows as Attention Shifts to Spot Bitcoin ETFs
Crypto investment products have seen a significant outflow of funds this week, while newly issued spot bitcoin ETFs have attracted billions of dollars in inflows. Institutional investors are redirecting their focus towards these ETFs, resulting in a shift away from other funds. The first day of trading for spot bitcoin ETFs set a record-breaking volume, although subsequent days showed lower activity. Nevertheless, the overall trading volume for spot bitcoin ETFs remains impressive, surpassing $10 billion within just three days. This demonstrates the growing interest and potential of these investment products in the crypto market.
By
By
By
By