- Cryptocurrency investment products recorded $500 million in outflows last week.
- Bitcoin recorded the largest outflow with $479 million, while Ethereum recorded an outflow of $39 million.
- Most of the outflows were in the U.S., with Grayscale’s ETFs seeing outflows of more than $2.2 billion, according to CoinShares’ weekly report.
According to digital asset investment company CoinShares, outflows from digital asset investment products surged significantly last week.
CoinShares’ latest weekly report shows a total outflow of $500 million from the cryptocurrency investment product market.
Bitcoin outflow amounted to $479 million
According to the asset management company, the global outflow of cryptocurrency investment products reached $409 million in the United States, $60 million in Switzerland, and $32 million in Germany. These three regions were the regions with the most outflows during the week ending January 26.
“Naturally, Bitcoin was the main focus, seeing outflows of US$479 million, while short Bitcoin saw additional inflows totaling US$10.6 million. Altcoins mainly recorded outflows last week, with Ethereum recording US$39 million, Polkadot and Chainlink recording US$700,000 and US$600,000 respectively.” James Butterfill, head of research at CoinShares, wrote in a blog published Monday.
Buttefill notes that outflows from Grayscale’s GBTC ETF, which has reached $5 billion since the ETF began trading on January 11, may have contributed to overall outflows in other regions.
This outlook also influenced the recent drop in the price of Bitcoin to $38,600 following the outflow of more than $2.2 billion from GBTC last week. However, recently approved U.S. ETFs had net inflows of $807 million.
Butterfill added, “Despite these positive trends, we believe most of the price decline is due to Bitcoin seed capital being acquired prior to January 11th.”
Bitcoin was trading around $42,320 on Monday morning (6:20 a.m. ET), up 4% over the past week. BTC was looking to extend gains after recovering from a dip below the psychological level of $40,000 last week.
Meanwhile, the price of Ethereum hovered around $2,275, down 4.3% over the past week.