Global Bitcoin ETP holdings over 900,000 BTC as Grayscale outflows 'subside’
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 dominate
Bitcoin investment products experienced significant outflows last week, with a total withdrawal of $479 million.
The top cryptocurrency has faced significant headwinds since the U.S. 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, U.S.-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 $10.3 million.
“Recent price declines prompted by the substantial outflows from the incumbent ETF issuer (Grayscale) in the U.S. totaling $5 billion, have likely prompted further outflows from other regions,” CoinShares Head of Research James Butterfill explained.
Grayscale outflows ‘subside’
Grayscale’s GBTC sustained significant outflows, witnessing a withdrawal of $2.2 billion last week. Notably, this follows a substantial outflow of $2.8 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.
![GBTC Outflows](https://cryptoslate.com/wp-content/uploads/2024/01/GE83dbXWQAA0J46.png)
In contrast, the newborn nine spot BTC ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, experienced robust inflows amounting to $1.8 billion. Since their launch, these ETFs have collectively attracted approximately $5.94 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.
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Oluwapelumi Adejumo
Journalist at CyptoRankingOluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Liam 'Akiba' Wright
Senior Editor at CyptoRankingAlso known as "Akiba," Liam is a reporter, editor and podcast producer at CyptoRanking. He believes that decentralized technology has the potential to make widespread positive change.
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