Outflows of $21m observed in investment products for digital assets
Investors withdrew $21 million from investment crypto products last week, according to a report by CoinShares. However, this amount doesn’t reflect the high trading volumes of Bitcoin, which reached $11.8 billion, seven times higher than the average weekly volume in 2023.
In terms of geography, the United States received $263 million in capital inflows, while Canada and Europe experienced outflows of $297 million. Analysts believe that this trend is due to assets migrating to the United States.
Bitcoin product outflows were minimal at $25 million, but the trading volume of $11.8 billion accounted for 63% of all BTC volumes on trusted exchanges. Ethereum and Solana-based products saw outflows of $14 million and $8.5 million, respectively.
Analysts highlight that ETP activity currently dominates overall trading activity. Established issuers with higher costs have been negatively affected in the U.S., with outflows totaling $2.9 billion since the launch of spot Bitcoin ETFs.
Since their launch, these new ETFs have gained $4.13 billion, surpassing losses from more expensive existing ETPs. Investors saw the recent price decline as an opportunity to invest in short Bitcoin products, resulting in an influx of $13 million. Net inflows into U.S. ETFs since their launch have amounted to $1.2 billion.
Chris Jay Terry, Senior IT Architect at BTCData, predicts an outflow of an additional $25 billion from the largest spot Bitcoin ETF, GBTC. After six days of trading, GBTC experienced a net outflow of $2.8 billion. JPMorgan Chase experts anticipate that the fund will lose around $13 billion, with $10 billion being transferred by investors to other products in the same sector.
