Digital asset investment products saw modest withdrawals of $21 million last week, but trading activity remained high. Bitcoin alone had trading volumes of $11.8 billion, seven times higher than the typical weekly volume in 2023, according to CoinShares.
US Incumbent Issuers Face Outflows
Bitcoin experienced minor outflows of $25 million, but its trading volumes accounted for 63% of all Bitcoin volumes on reputable exchanges. This highlighted the dominance of Exchange-Traded Product (ETP) activity in the current trading landscape. Ethereum and Solana also faced challenges with outflows of $14 million and $8.5 million respectively.
In the US, established issuers with higher costs saw outflows totaling $2.9 billion since the launch of newly issued spot-based ETFs on January 11, 2024. However, the recently introduced ETFs attracted inflows of $4.13 billion, surpassing the losses incurred by the higher-cost incumbent ETPs.
Investors viewed the recent price decline as an opportunity to increase their exposure to short-Bitcoin investment products, resulting in inflows of $13 million. Canada and Europe experienced a collective outflow of $297 million as assets shifted towards the US due to its more competitive fee structures.
Equities related to blockchain saw significant inflows of $156 million, extending a nine-week streak to a total of $767 million.
Performance of Spot Bitcoin ETFs
The recently approved spot Bitcoin ETFs, known as “the Newborn Nine,” have acquired over 95,297 BTC in their first six days of trading since January 11, 2024. BlackRock’s iShares Bitcoin Trust (IBIT) leads with 33,706 BTC, followed by Fidelity Wise Original Bitcoin Fund (FBTC) with 30,384 BTC.
Bitwise (BITB) holds 10,235 BTC, ARK Invest/21 Shares’s ARKB holds 9,134 BTC, and Invesco’s BTCO has 6,192 BTC. The VanEck Bitcoin Trust (HODL), the Valkyrie Bitcoin Fund (BRRR), and Franklin Templeton’s EZBC have lower figures with 2,566 BTC, 1,726 BTC, and 1,169 BTC respectively.
The WisdomTree Bitcoin Fund (BTCW) has the least assets with a total of 182 BTC. GBTC, which was recently converted into an ETF, leads among spot Bitcoin ETFs with over 552,077 BTC.
Hot Take: Increased Trading Volumes and ETF Inflows
Last week saw modest withdrawals from digital asset investment products, but trading volumes remained high. Bitcoin alone had significant trading volumes of $11.8 billion, indicating the dominance of Exchange-Traded Product (ETP) activity. Altcoins faced challenges with outflows for Ethereum and Solana. In the US, newly issued spot-based ETFs attracted inflows despite higher-cost incumbent ETPs experiencing outflows. Investors took advantage of the price decline to increase exposure to short-Bitcoin investment products. Assets shifted towards the US from Canada and Europe due to more competitive fee structures. Additionally, equities related to blockchain continued to see significant inflows. The performance of spot Bitcoin ETFs has been strong since their launch in January 2024.
By
By
By
By
By