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Week Of Withdrawals: Crypto Funds Lose $500M As Grayscale’s Outflow Wanes

Press Releases Crypto News Bitcoinist Week Of Withdrawals: Crypto Funds Lose $500M As Grayscale’s Outflow Wanes

The crypto market, particularly Bitcoin, has recently experienced significant outflows. According to a recent report from CoinShares, digital asset investment products worldwide saw net outflows of $500 million last week.

These outflows predominantly stemmed from Grayscale’s converted spot Bitcoin exchange-traded fund (GBTC), though its impact seems to be diminishing with daily outflows reducing progressively throughout the week. James Butterfill, Head of Research at CoinShares, highlights this trend, noting a decrease in the intensity of outflows.

While Grayscale’s GBTC experienced a decrease in outflows, there has been a surge in capital moving into the newly established spot Bitcoin ETFs. Last week, these spot ETFs collectively attracted $1.8 billion in fresh capital, with BlackRock’s IBIT and Fidelity’s FBTC at the forefront, securing $744.7 million and $643.2 million, respectively.

Since their debut on January 11, these fresh market entrants have amassed $5.8 billion in total inflows. This influx has effectively balanced out the $5 billion that flowed out of GBTC, culminating in a net positive inflow of $759.4 million into the crypto market funds.

Global Outflows And Bitcoin’s Market Resilience

The impact of these outflows extends beyond Grayscale, with other altcoin-based funds also registering net outflows. Ethereum investment products, for instance, saw $39 million left, with smaller amounts also exiting Polkadot and Chainlink funds.

Solana was an exception in this trend, which witnessed inflows worth $3 million. Interestingly, blockchain equities continued to attract investments, with an additional $17 million inflow last week.

Crypto asset flows. | Source: Coinshares

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Author: Samuel Edyme

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