Crypto fund outflows reach $24.7M as GBTC selling impacts Bitcoin price
The latest report from European cryptocurrency investment firm CoinShares shows that there were minor outflows from institutional Bitcoin ( BTC ) investment products over the past 7 days.
According to CoinShares’ “Digital Asset Fund Flows Weekly” report published on Jan. 22, institutional investors are reducing Bitcoin exposure, with BTC investment products seeing total outflows of $24.7 million this past week.
Capital flows for crypto investment products. Source: CoinSharesThe data follows heavy selling amid spot Bitcoin ETF-driven crypto 41c6adbe-8475-45fd-a5a4-c496488efc51 meltdown , with institutions having withdrawn nearly $21 million from crypto products between Jan. 11 and May 19 before outflows briefly slowed toward the end of last week.
Trade volume for ETF products is also sharply increasing, totaling $11.8 billion over the last week. This represented 63% of all Bitcoin volumes on trusted exchanges, highlighting that ETP activity currently dominates overall trading activity.
Digital asset investment saw minor outflows last week, totalling US$21m.
— CoinShares (@CoinSharesCo) January 22, 2024
Trading volumes in #Bitcoin are very high, totalling US$11.8bn.
– Issuer dynamics –
Higher cost issuers: US$2.9bn outflows
Newly issued ETFs: US$4.13bn inflows (since launch)
Net inflows into US ETFs… pic.twitter.com/sYZAD2hRfB
Despite digital asset investment products witnessing minor outflows last week, CoinShares highlighted incumbent higher-cost spot issuers in the United States saw massive outflows to the advantage of new issuers.
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CoinShares head of research James Butterfill said,
“Incumbent, higher cost issuers suffered in the U.S., seeing U.S. $2.9bn of outflows, while newly issued ETFs have now seen a total of US$4.13bn inflows since launch.”
“Investors saw recent price weakness as an opportunity to add to short-Bitcoin investment products, seeing U.S. $13m inflows,” the CoinShares report added.
The declining institutional demand for BTC coincided with decreasing institutional appetites for Ether — after Ether ( ETH ) witnessed outflows of $13.6 million this past week.
This data from CoinShares highlights the impacts of spot Bitcoin ETFs on the cryptocurrency sector, with the total market cap dropping 3.4% over the last 24 hours to $1.59 trillion.
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