Digital asset manager CoinShares says institutions are withdrawing up to $500 million from cryptocurrency exchange-traded products (ETPs) weeks after the US Securities and Exchange Commission (SEC) approved a bitcoin spot trading fund (ETF) earlier this month. .
In its latest report on digital asset fund flows, CoinShares found that although cryptocurrency investment products saw huge outflows last week, grayscale outflows are slowing down slightly.
“Digital asset investment products saw significant outflows from a global perspective, totaling US$500 million…
Recent price declines resulting from significant outflows from existing ETF issuers (gray scale) in the US totaling US$5 billion (since January 11, 2024), have likely prompted further outflows in areas Other. Total outflows in greyscale last week were $2.2 billion, although the data suggests that outflows are beginning to taper off with total daily inflows continuing to decline during the week.”
However, recently released US-based ETFs have enjoyed inflows of $1.8 billion over the past seven days. These ETFs have seen nearly $6 billion in inflows since the SEC approved them earlier this month.
“Total inflows on a net basis, including grayscale inflows since launch, are $807 million. We believe that most of the price decline, despite these positive inflows, was due to seed capital being acquired for Bitcoin prior to January 11.”
Bitcoin products saw outflows of $478.9 million, while Ethereum (ETH) products incurred losses of $38.8 million. XRP, Cardano (ADA) and Litecoin (LTC) lost $0.4, $0.4 and $0.2 million respectively, while Solana (SOL) brought in inflows of $3 million.
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