- Bitcoin investment products saw $479 million in outflows last week as the cryptocurrency’s price declined 12% amidst SEC approval of spot ETFs in the US. Short BTC products saw inflows of $11 million.
- Grayscale’s GBTC saw outflows of $22 billion last week, down from $28 billion two weeks ago, indicating slowing outflows as investors rotate into new spot ETFs like BlackRock’s IBIT and Fidelity’s FBTC.
- Global Bitcoin holdings in ETPs exceeded 900,000 BTC, valued at $36.2 billion, with GBTC accounting for over 50% at 502,000 BTC, showing growing institutional demand for regulated exposure.
Crypto investment products saw their second consecutive week of outflow this year with $500 million leaving the funds according to CoinShares‘ latest weekly report.
Bitcoin Dominates Outflows
Bitcoin investment products experienced significant outflows last week with a total withdrawal of $479 million.
The top cryptocurrency has faced significant headwinds since the US Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETF) in the country. Its value has declined by more than 12% to around $42,500 as of press time.
This downturn has spurred bearish investors to turn to short BTC products, resulting in nearly $11 million in inflows last week.
Conversely, prominent alternative digital assets like Ethereum, Polkadot, and Chainlink also saw outflows with $39 million, $700,000, and $600,000 respectively. However, Solana defied this trend by recording a modest inflow of $3 million.
Across regions, US-based funds dominated the scene experiencing net outflows of $409 million. Switzerland and Germany followed with outflows of $60 million and $32 million respectively. Brazil emerged as the exception with the most significant net inflows of $103 million.
Grayscale Outflows Subside
Grayscale‘s GBTC sustained significant outflows witnessing a withdrawal of $22 billion last week. Notably, this follows a substantial outflow of $28 billion two weeks ago, culminating in a total flow of $5 billion since the SEC approval of spot ETFs.
However, recent data indicates a diminishing trend in the outflows with Butterfill observing a gradual reduction in daily total outflows throughout the past week.
“The outflows in Grayscale aren’t pretty but it looks like they are beginning to subside,” Butterfill said.
In contrast, the newborn nine spot BTC ETFs including BlackRock’s IBIT and Fidelity’s FBTC experienced robust inflows amounting to $18 billion. Since their launch, these ETFs have collectively attracted approximately $594 billion in inflows, resulting in a net inflow of $807 million when factoring in GBTC outflows.
Globally, crypto Exchange-Traded Products (ETPs) currently hold 900,000 BTC valued at an estimated $36.2 billion per ByteTree data. Notably, GBTC constitutes over 50% of this total boasting a balance of 502,000 BTC equivalent to an estimated $21.1 billion.
Meanwhile, IBIT and FBTC’s BTC holdings have flipped ProShares’ futures BTC ETF (BITO) despite trading for fewer days.
Conclusion
The launch of spot Bitcoin ETFs in the US has led to significant outflows from Grayscale’s GBTC. However, these outflows appear to be slowing down as investors rotate into the new spot ETFs. Globally, total Bitcoin holdings in ETPs have now exceeded 900,000 BTC, indicating growing institutional demand for regulated Bitcoin exposure.
