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The Good and the Bad: Bitcoin ETFs Attracted Billions Last Week but Other Digital Assets Saw Outflows

The Good and the Bad: Bitcoin ETFs Attracted Billions Last Week but Other Digital Assets Saw Outflows

According to CoinShares’ latest report, there was a significant decrease in investments in digital assets, with over $2 billion withdrawn from Grayscale alone last week.

On the other hand, the newly introduced US ETFs experienced a surge in investments, attracting $1.8 billion in inflows last week and totaling $5.94 billion since their launch on January 11th, 2024.

  • During the past week, digital asset investment products recorded $500 million in outflows. Bitcoin saw the majority of outflows, amounting to $479 million, while short-bitcoin products attracted additional inflows totaling $10.6 million.
  • Altcoins primarily experienced outflows last week, with Ethereum, Polkadot, and Chainlink witnessing withdrawals of $39 million, $0.7 million, and $0.6 million, respectively. Solana was the only altcoin to buck the trend, amassing $3 million in inflows during the same period.
  • Blockchain equities also saw increased investments, with inflows totaling $17 million last week.
  • The United States, Switzerland, and Germany experienced the highest outflows, amounting to $409 million, $60 million, and $32 million, respectively. Recent price drops likely prompted further withdrawals in other regions, driven by significant outflows from Grayscale.
  • While Grayscale saw outflows of $2.2 billion last week, data suggests that the rate of outflows is gradually decreasing as the week progresses.
  • On the other hand, newly introduced US ETFs attracted inflows totaling $1.8 billion last week and have accumulated $5.94 billion in inflows since their launch, resulting in a net positive inflow of $807 million, including Grayscale’s inflows since inception.
  • CoinShares noted that much of the price decline can be attributed to Bitcoin seed capital being acquired before January 11.
  • Brazil saw inflows of $10.3 million, while Australia received $0.3 million in investments during the same period.