Global Bitcoin ETP Holdings Surpass 900,000 BTC Amidst Fund Outflows

CoinShares' latest weekly report reveals that the global cryptocurrency investment products witnessed a second consecutive week of outflows, with a total of $500 million exiting these funds. Bitcoin, in particular, faced significant headwinds following the approval of spot exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC), resulting in outflows of $479 million. However, alternative digital assets such as Ethereum, Polkadot, and Chainlink also experienced outflows, while Solana stood out with a modest inflow of $3 million.

Bitcoin Dominates Outflows, Driven by SEC's Spot ETF Approval

Bitcoin's value declined by more than 12% to approximately $42,500 following the SEC's approval of spot ETFs in the U.S. This downturn led to substantial outflows, prompting bearish investors to turn to short BTC products, resulting in nearly $11 million in inflows. Other regions experienced outflows, with U.S.-based funds leading with net outflows of $409 million, followed by Switzerland and Germany with $60 million and $32 million, respectively. Brazil, however, witnessed significant net inflows of $10.3 million.

Grayscale's GBTC Faces Substantial Outflows, but Trend Subsides

Grayscale's GBTC witnessed a withdrawal of $2.2 billion last week, following a substantial outflow of $2.8 billion two weeks ago. However, recent data suggests a diminishing trend in outflows, with CoinShares' Head of Research, James Butterfill, noting a gradual reduction in daily total outflows throughout the past week. In contrast, the newly launched nine spot BTC ETFs, including BlackRock's IBIT and Fidelity's FBTC, experienced robust inflows, accumulating $1.8 billion. Since their launch, these ETFs collectively attracted approximately $5.94 billion in inflows, resulting in a net inflow of $807 million when factoring in GBTC outflows.

Grayscale GBTC Outflows.

Global Crypto ETP Holdings and GBTC's Dominance

Data from ByteTree indicates that globally, crypto Exchange-Traded Products (ETPs) currently hold 900,000 BTC, valued at an estimated $36.2 billion. GBTC constitutes over 50% of this total, boasting a balance of 502,000 BTC, equivalent to an estimated $21.1 billion. Notably, IBIT and FBTC's BTC holdings have surpassed ProShares' futures BTC ETF (BITO) despite trading for fewer days.

Closing Thoughts: Evolving Trends in Crypto Fund Flows

The recent dynamics in cryptocurrency fund flows reveal a complex interplay of market sentiment, regulatory developments, and the emergence of new investment vehicles. While Grayscale's GBTC experiences notable outflows, the influx into newly launched spot BTC ETFs showcases investors' evolving preferences and the continued maturation of the crypto investment landscape.