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.

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.