By: Eva Baxter
Cryptocurrency investment products witnessed their second consecutive week of outflows this year, bleeding $500 million, according to the latest CoinShares report. Bitcoin investment products dominated these outflows with a stark $479 million withdrawal.
Significantly, U.S.-based funds saw net outflows of $409 million. Counter to the dominating trend, Brazil reported the highest net inflows at $10.3 million. Alternative digital assets, such as Ethereum, Polkadot, and Chainlink, also followed the outflow trend with $39 million, $700,000, and $600,000, respectively. However, Solana bucked the trend and recorded an inflow of $3 million.
Grayscale's GBTC was hit with hefty outflows, reporting a $2.2 billion withdrawal last week. This contributes to the comprehensive outflow of $5 billion, reflecting the consequences of the U.S. Securities and Exchange Commission's approval of spot Exchange-Traded Funds (ETF). However, CoinShares' head of research, James Butterfill, noted that the GBTC outflows trend seems to peter out last week.
Nevertheless, spot BTC ETFs, including BlackRock's IBIT and Fidelity's FBTC, enjoyed robust inflows amounting to $1.8 billion. These products have collectively attracted around $5.94 billion inflows since their launch. Globally, crypto Exchange-Traded Products (ETPs) hold about 900,000 BTC, valued at approximately $36.2 billion, with over 50% of this total belonging to GBTC.