• Wed. May 29th, 2024

Crypto investment products saw $500M in outflows last week: CoinShares

  • Crypto investment products saw an outflow of $500 million last week.
  • Bitcoin saw the most outflows with $479 million, while Ethereum recorded $39 million in outflows.
  • CoinShares’ weekly report shows most of the outflows were in the US, where Grayscale’s ETF witnessed over $2.2 billion in outflows.

Digital asset investment products saw a significant spike in outflows lask week, according to digital assets investment firm CoinShares.

CoinShares’s latest weekly report shows the crypto investment products market saw outflows totalling $500 million..

Bitcoin saw $479 million in outflows

According to the asset manager, the global outflows from crypto investment products reached $409 million in the US, $60 million in Switzerland and $32 million in Germany – the three regions with the highest outflows for the week ending January 26.

Bitcoin has understandably been the primary focus, seeing US$479m outflows, while short-bitcoin saw further inflows totalling US$10.6m. Altcoins predominantly saw outflows last week, with Ethereum seeing US$39m, and Polkadot and Chainlink seeing US$0.7m and US$0.6m respectively,” James Butterfill, the Head of Research at CoinShares wrote in a blog published Monday.

Buttefill notes that outflows from Grayscale’s GBTC ETF, which reached $5 billion since the ETF started trading on January 11, may have contributed to overall outflows across other regions.

The outlook also contributed to the recent declines for Bitcoin price, which traded to lows of $38,600 as GBTC saw over $2.2 billion in outflows last week. However, net inflows for the recently approved US ETFs was $807 million.

“We believe that much of the price falls, despite these positive flows, was due to Bitcoin seed capital being acquired prior to 11th January,” Butterfill added.

Bitcoin traded around $42,320 on Monday morning (6:20 am ET), up 4% in the past week. BTC was looking to extend the gains after recovering from last week’s dip below the psychological level at $40k.

Meanwhile, Ethereum price was hovering near $2,275, down 4.3% in the past week.

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