Digital Asset Investment Products See $21M Outflows Despite Record Bitcoin Trading Volumes

Digital asset investment products experienced modest withdrawals of $21 million last week. However, this overall figure doesn’t reflect the significantly elevated trading activity, with Bitcoin alone witnessing trading volumes of $11.8 billion.

This amount is seven times higher than the typical weekly trading volume observed in 2023, according to the latest report by CoinShares.

US Incumbent Issuers Experience Outflows

Bitcoin experienced minor outflows amounting to $25 million. However, the substantial trading volumes of $11.8 billion represented 63% of all Bitcoin volumes on reputable exchanges. This was indicative of the dominance of Exchange-Traded Product (ETP) activity in the current overall trading landscape.

Meanwhile, altcoins faced challenges, with Ethereum and Solana witnessing outflows of $14 million and $8.5 million, respectively.

In the United States, established issuers with higher costs suffered outflows totaling $2.9 billion since the launch of newly issued spot-based ETFs on January 11, 2024. Despite this, the recently introduced ETFs attracted a total of $4.13 billion in inflows since their launch, surpassing the losses incurred by the higher-cost incumbent ETPs.

CoinShares stated that investors viewed the recent price decline as an opportunity to increase their exposure to short-Bitcoin investment products, resulting in inflows of $13 million. Canada and Europe encountered a collective outflow of $297 million. This shift in regions indicates a movement of assets towards the United States, driven by its more competitive fee structures.

On the other hand, equities related to blockchain experienced additional significant inflows, amounting to $156 million, extending the ongoing nine-week streak to a total of $767 million.

Spot Bitcoin ETFs’ Performance So Far

In the first six days of trading, the recently approved spot Bitcoin ETFs, a.k.a “the Newborn Nine,” have acquired over 95,297 BTC since they started trading on January 11, 2024. BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack with 33,706 BTC, while the Fidelity Wise Original Bitcoin Fund (FBTC) follows closely with holdings of 30,384 BTC.

Bitwise (BITB) possesses 10,235 BTC, Ark Invest/21 Shares’s ARKB holds 9,134 BTC, and Invesco’s BTCO trailing with 6,192 BTC. The VanEck Bitcoin Trust (HODL), the Valkyrie Bitcoin Fund (BRRR), and Franklin Templeton’s EZBC report lower figures, accumulating 2,566 BTC, 1,726 BTC, and 1,169 BTC, respectively.

The WisdomTree Bitcoin Fund (BTCW) holds the least assets, totaling 182 BTC. GBTC, which was recently converted into an ETF, leads among spot Bitcoin ETFs with a substantial holding of over 552,077 BTC.

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