25 February, 2024

Global Digital Asset Outflows Reach $500M, Grayscale ETF Faces Substantial Redemptions

4 weeks ago

01 Feb, 2024

  • CoinShares reports substantial $500M outflows globally, with a focus on the US, Switzerland, and Germany.
  • Grayscale’s $5B outflows since January 11 affect prices, but new US ETFs attract $807M.
  • Bitcoin sees $479M outflows, altcoins decline, while blockchain equities attract $17M inflows.

In a recent update from CoinShares’ Digital Asset Fund Flows Weekly Report (Volume 167), the global landscape of digital asset investments is marked by substantial outflows totaling $500 million. The focus of these outflows is notably on the US, Switzerland, and Germany, amounting to $409 million, $60 million, and $32 million, respectively.

One of the primary reasons for recent price declines is attributed to significant outflows from the first ETF issuer, Grayscale, in the US, totaling a staggering $5 billion since January 11, 2024. Last week alone witnessed outflows of $2.2 billion from Grayscale. However, emerging data signals a potential subsiding trend as daily outflow totals gradually reduced over the week.

Contrastingly, newly issued US ETFs saw noteworthy inflows, amounting to US$1.8 billion last week. Since their launch on January 11, 2024, these ETFs have attracted an impressive $5.94 billion in total inflows. Taking into account Grayscale’s outflows since launch, the net inflows for these new ETFs now stand at $807 million. Despite these positive flows, there is a belief that a significant portion of the observed price falls can be attributed to the acquisition of Bitcoin seed capital before January 11.

Bitcoin, as the focal point of attention, witnessed substantial outflows totaling $479 million. Simultaneously, short-bitcoin products saw further inflows, reaching $10.6 million. 

Last week, altcoins experienced predominant outflows, with Ethereum leading the pack at $39 million, followed by Polkadot and Chainlink with outflows of $0.7 million and $0.6 million, respectively. On a different note, blockchain equities observed increased investor interest, with inflows totaling US$17 million last week.