Digital Asset Products See $862M in Inflows, Nearly Erasing Previous Week’s Outflows

Ruholamin Haqshanas
Last updated: | 2 min read
Digital Asset Products Inflows

Digital asset investment products experienced a positive turnaround in sentiment as inflows reached a total of $862 million last week, almost fully recovering from the record outflows of $931 million in the prior week.

According to a recent report by CoinSharesBitcoin (BTC) products attracted almost all of the inflows, drawing around $865 million.

The report said that the increase can be attributed to renewed interest from new ETF issuers in the United States, who contributed $1.8 billion in inflows.

However, Grayscale, a prominent digital asset management firm, experienced outflows of $967 million during the same period. 

Short-Bitcoin products, on the other hand, faced outflows for the second consecutive week, totaling $2 million.

ETF Activity Starts to Slow Down

However, it’s worth noting that the activity in exchange-traded funds (ETFs) has started to slow down, with daily trading turnover now at $5.4 billion, a decline of 36% compared to its peak three weeks ago. 

Despite this decrease, the current turnover remains significantly higher than the 2023 average of $347 million, suggesting that the initial market hype is gradually cooling off.

On a regional level, the divergence in investor sentiment continues. 

The United States witnessed an additional $897 million in inflows, while Europe and Canada combined experienced outflows of $49 million, bringing the year-to-date outflows for these regions to $785 million.

Meanwhile, Ethereum, the second-largest cryptocurrency, witnessed outflows of $19 million for the fourth consecutive week. 

This trend is often observed after network upgrades, reflecting investor caution regarding the success of these updates.

In the altcoin market, there were inflows of $18.3 million last week. 

Solana emerged as the top performer, attracting $6.1 million in inflows. 

Other notable inflows were seen in Filecoin, Polkadot, and Chainlink, which received $3.9 million, $2.4 million, and $1.9 million respectively.

Spot Bitcoin ETFs Start Week with Outflows

Spot Bitcoin ETFs saw net outflows on Monday as withdrawals from Grayscale’s Bitcoin ETF (GBTC) surged once again, reaching over $300 million.

The combined net outflow for Bitcoin spot ETFs reached $85.84 million, driven primarily by the significant outflow from GBTC. 

On the other hand, BlackRock’s ETF IBIT saw a net inflow of $165 million, and Fidelity’s ETF FBTC recorded a net inflow of $43.99 million. 

Overall, Bitcoin spot ETFs have attracted a cumulative net inflow of $12.04 billion.

The negative flows in Bitcoin ETFs coincide with a correction in the price of Bitcoin, which dropped 5% to as low as $66,000. 

As of now, the leading cryptocurrency is trading at $66,858, down by more than 4% over the past day. 

Meanwhile, the correction comes just weeks before the upcoming Bitcoin halving event, which is expected to occur in 19 days.