Digital Asset Investment Products Saw $500 Million Outflows Over The Past Week

Key Points:

• Outflows of global digital asset investment products hit $500 million, with major regional declines in the US, Switzerland, and Germany.
• Grayscale’s massive $5 billion outflow since January 11 triggers overall market declines.

Digital asset investment products last week witnessed a notable trend with a global outflow of $500 million, according to a CoinShare report.

Global Digital Asset Investment Products Face Unprecedented Outflows

Regional focus reveals significant shifts, with the United States, Switzerland, and Germany experiencing outflows amounting to $409 million, $60 million, and $32 million, respectively.

The recent decline in prices is attributed to significant outflows from the leading ETF issuer, Grayscale, in the United States, amounting to a staggering $5 billion since January 11, 2024. This event has potentially influenced outflows in other regions.

Although Grayscale witnessed outflows of $2.2 billion last week, data indicates a gradual subsiding of outflows as daily totals reduced throughout the week. In contrast, newly issued US ETFs observed substantial inflows, reaching $1.8 billion last week and accumulating a total of $5.94 billion since their launch on January 11, 2024. Taking Grayscale inflows into account, the net balance stands at $807 million.

The primary focus on Bitcoin reveals a significant outflow of $479 million, while short-bitcoin investments saw inflows totaling $10.6 million. Altcoins, on the other hand, experienced dominant outflows last week. Ethereum witnessed outflows of $39 million, while Polkadot and Chainlink saw outflows of $0.7 million and $0.6 million, respectively.

Despite positive inflows into newly issued ETFs, the market experienced price declines, largely attributed to the acquisition of Bitcoin seed capital before January 11. Investors are closely monitoring these shifts in digital asset investment products, adapting to the evolving trends within this dynamic market.