Crypto Funds Record $500 Million in Net Outflows Last Week
Crypto funds recorded net outflows globally last week totaling $500 million, according to the latest analysis from CoinShares. Outflows are centered on the U.S., Switzerland, and Germany.
Key Takeaways:
- $500 million in total net outflows last week.
- Grayscale Bitcoin Trust (GBTC) saw $2.2 billion exits.
- U.S. spot Bitcoin ETFs added $1.8 billion.
- GBTC outflows are decreasing daily but total $5 billion since January 11th.
- Investors are likely securing gains from long-awaited spot approvals.
The report cites recent crypto price declines driving investor hesitation alongside institutional redemptions from Grayscale’s market-leading Bitcoin Trust (GBTC) vehicle. It has dropped $5 billion since January 11th.
Read more: Amazon Developing A Film Based On $3B Bitfinex Bitcoin Heist
Spot Bitcoin ETFs witness $5.94 billion inflow since launch
Traders appear to be increasingly rotating into new U.S. spot bitcoin ETFs rather than exiting crypto exposure entirely. These ETFs have seen $5.94 billion enter since launching after January’s long-awaited regulatory approval.
CoinShares highlights that much of the early capital entering newly approved ETFs likely involved investors selling existing crypto holdings to then purchase fund shares. This, according to the report, is subsequently suppressing prices.
Read more: SEC Unlikely To Greenlight Ethereum ETF Until Late 2025: TD Cowen
This behavior points to traders securing significant gains after years of awaiting a spot Bitcoin ETF, while Bitcoin itself is down substantially from its peak.
According to the data, Bitcoin witnessed $479 million in outflows. Following this, there was a $39 million outflow from altcoins like Ethereum. Additionally, Polkadot and Chainlink saw $0.7m and $0.6m, respectively.
