Bitcoin drives crypto ETP market flows as Grayscale sell-off slows

Digital asset investment products posted over $700 million in inflows during the week ending Feb. 2, reversing a prior week of outflows — due mainly to a flood of investors to Bitcoin ( BTC ) products in the United States, according to alternative asset manager CoinShares. 

Inflows into the global digital asset product market amounted to $708 million, with United States-listed products making $720 million of inflows in the week. Bitcoin products, including the newly launched spot Bitcoin ETFs, accounted for most digital asset product inflows at $703 million, according to the data.

The number is a reversal of outflows from the previous week, which totalled $499.7 million across all digital asset investment products.

Inflows by asset for the week of Jan. 29. Source: CoinShares

The United States’ newly issued spot exchange-traded funds (ETFs) saw $1.7 billion come in over the week, bringing total inflows since launch to $7.7 billion. CoinShares analyst James Butterfill also observed there has been a slow down in outflows from the Grayscale Bitcoin Trust. 

“This [inflow into U.S. BTC ETFs] has been offset by outflows from incumbent issuers, which total US$6BN, but data highlight a significant reduction in momentum of these outflows.”

The Grayscale Bitcoin Trust (GBTC) ETF sold off $926.7 million of BTC, and ProShares sold $108.9 million of BTC, but those outflows were offset the iShares (BlackRock) and Fidelity ETFs, which added $1.6 billion between them.

Digital asset investment products saw large inflows totalling US$708m last week!

This brings year-to-date inflows to US$1.6bn and total global assets under management to US$53bn.

Trading volumes in ETPs fell to US$8.2bn (compared to US$10.6bn the prior week), but… pic.twitter.com/phsy5zjnTf

— CoinShares (@CoinSharesCo) February 5, 2024

The BTC price took a hit last week with indications that the U.S. Federal Reserve may keep interest rates high for the foreseeable future. 

Related: Riot, TeraWulf and CleanSpark best-positioned miners for Bitcoin halving — CoinShares

Per CoinShares data, Solana-focused ETPs topped its altcoin competitors with $13 million coming in, compared to Ethereum’s $6.4 million and Avalanche’s $1.3 million. Ether ( ETH ) saw an outflow of $6.4 million.

Total inflows to digital asset products for the week of Jan. 29. Source: CoinShares

Canadian crypto ETPs saw the biggest outflow nationally, with $31.3 million traded away. Sweden-listed products came in second with $8.2 million in outflows, continuing a streak of outflows from the prior week. Meanwhile, the flows reversed in Germany, Switzerland and the United States. Switzerland saw a dramatic turnaround, with $59.8 million going out two weeks ago and $20.9 million coming in last week.

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