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European Bitcoin ETPs Outflow Hits $106 Million After US Spot Bitcoin ETFs Launch

January 18, 2024 - Around 2 mins mins to read

Key Points:

  • European Bitcoin ETPs saw a $30 million single-day outflow and a $106 million total outflow in four days post-approval of the US spot Bitcoin ETF.
  • Evidence suggests a migration from high-fee European Bitcoin ETPs to low-fee US Bitcoin ETFs.
  • Established European asset managers already offer ETPs resembling ETFs.
In a notable market shift, statistics from BitMEX Research reveal that following the approval of the US spot Bitcoin ETF, the four largest European Bitcoin ETPs experienced a significant single-day outflow of $30 million.
image 314
Source: BitMEX Research

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Capital Exodus from European Bitcoin ETPs Post U.S. ETF Approval

The trend continued over four days, resulting in a total capital outflow of approximately $106 million. This movement coincides with evidence suggesting a migration of investors from high-fee European Bitcoin ETPs to their low-fee counterparts in the U.S.

Interestingly, the approved U.S. Bitcoin spot ETF directly tracks the price of Bitcoin, a departure from ETFs tied to Bitcoin futures contracts that have previously gained regulatory approval in the United States. While the recent approval of 11 investment firms by the U.S. Securities and Exchange Commission was celebrated as a historic moment, it seems European investors, who have had access to listed crypto products for years, are reshaping their portfolios.

Notably, established European asset managers such as CoinShares, 21shares, WisdomTree, and VanEck already provide exchange-traded products (ETPs) that function similarly to ETFs. Contrary to the perception of a novel development, European Bitcoin ETPs have a well-established presence on the continent.

According to ETFbook data, the current assets under management within crypto exchange-traded products (ETPs) in Europe amount to approximately $9 billion. The surge in these investments over the past year has been influenced by the anticipation and subsequent approval of ETFs in the U.S., signifying a dynamic shift in investor preferences and capital allocation within the cryptocurrency market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
Bitcoin

European Bitcoin ETPs Outflow Hits $106 Million After US Spot Bitcoin ETFs Launch

Key Points:

  • European Bitcoin ETPs saw a $30 million single-day outflow and a $106 million total outflow in four days post-approval of the US spot Bitcoin ETF.
  • Evidence suggests a migration from high-fee European Bitcoin ETPs to low-fee US Bitcoin ETFs.
  • Established European asset managers already offer ETPs resembling ETFs.
In a notable market shift, statistics from BitMEX Research reveal that following the approval of the US spot Bitcoin ETF, the four largest European Bitcoin ETPs experienced a significant single-day outflow of $30 million.
image 314
Source: BitMEX Research

Read more: Bitcoin Spot ETF and Futures ETF: Differences To Make The Right Investment Choice

Capital Exodus from European Bitcoin ETPs Post U.S. ETF Approval

The trend continued over four days, resulting in a total capital outflow of approximately $106 million. This movement coincides with evidence suggesting a migration of investors from high-fee European Bitcoin ETPs to their low-fee counterparts in the U.S.

Interestingly, the approved U.S. Bitcoin spot ETF directly tracks the price of Bitcoin, a departure from ETFs tied to Bitcoin futures contracts that have previously gained regulatory approval in the United States. While the recent approval of 11 investment firms by the U.S. Securities and Exchange Commission was celebrated as a historic moment, it seems European investors, who have had access to listed crypto products for years, are reshaping their portfolios.

Notably, established European asset managers such as CoinShares, 21shares, WisdomTree, and VanEck already provide exchange-traded products (ETPs) that function similarly to ETFs. Contrary to the perception of a novel development, European Bitcoin ETPs have a well-established presence on the continent.

According to ETFbook data, the current assets under management within crypto exchange-traded products (ETPs) in Europe amount to approximately $9 billion. The surge in these investments over the past year has been influenced by the anticipation and subsequent approval of ETFs in the U.S., signifying a dynamic shift in investor preferences and capital allocation within the cryptocurrency market.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.