Bitcoin Drives ETP Market Flows Higher
05 Feb, 2024 ● Crypto News
During the week ending February 2, digital asset investment products saw a notable turnaround, with inflows exceeding $700 million, a reversal from the prior week's outflows. This surge was primarily attributed to heightened investor interest in Bitcoin products in the United States, as per insights from CoinShares, an alternative asset manager.
Globally, inflows into digital asset products amounted to $708 million, with US-listed products contributing $720 million to this total. Bitcoin products, notably including recently launched spot Bitcoin ETFs, constituted the bulk of these inflows, tallying $703 million.
This reversal contrasts starkly with the $499.7 million outflows observed across all digital asset investment products in the previous week.
In the United States, newly issued spot exchange-traded funds (ETFs) attracted $1.7 billion in inflows over the week, bringing the total since their launch to $7.7 billion.
CoinShares analyst James Butterfill also noted a slowdown in outflows from the Grayscale Bitcoin Trust.
While significant outflows were witnessed from the Grayscale Bitcoin Trust and ProShares, amounting to $926.7 million and $108.9 million in BTC respectively, these were offset by inflows into iShares (BlackRock) and Fidelity ETFs, which saw a combined addition of $1.6 billion.
The BTC price faced downward pressure last week amid indications that the U.S. Federal Reserve might maintain high interest rates in the near future.
According to CoinShares data, Solana-focused ETPs outperformed other altcoins, attracting $13 million in inflows, while Ethereum saw $6.4 million in inflows and Avalanche received $1.3 million. However, Ether experienced an outflow of $6.4 million.
In terms of national trends, Canadian crypto ETPs saw the largest outflows, totaling $31.3 million, followed by Sweden-listed products with $8.2 million.
Conversely, flows reversed in Germany, Switzerland, and the United States. Notably, Switzerland saw a significant turnaround, with $59.8 million in outflows two weeks ago and $20.9 million in inflows last week.
Sources:
https://cointelegraph.com/news/bitcoin-drives-digital-asset-market-gains-grayscale-selloff-slows
https://blog.coinshares.com/volume-168-digital-asset-fund-flows-weekly-report-16427d7d3235
