Global crypto investment products at asset managers such as Ark Invest, Bitwise, Fidelity, Grayscale, ProShares and 21Shares registered a third-consecutive week of net outflows totaling $435 million last week, according to CoinShares’ latest report.
The figure is the largest since a record of nearly $1 billion in outflows was recorded during one week last month as bitcoin corrected after reaching its latest all-time high of $73,836 on March 14.
Weekly crypto asset flows. Images: CoinShares.
“Trading volumes in exchange-traded products fell to $11.8 billion last week compared to $18 billion the prior week, while bitcoin prices fell by 6%,” CoinShares Head of Research James Butterfill added.
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Grayscale’s outflows decelerate but so do inflows from new issuers
Most of the outflows were from the incumbent Grayscale, which converted its Bitcoin Trust product into a spot bitcoin exchange-traded fund in January. Grayscale’s GBTC contributed $454.1 million in outflows last week alone. However, this was the lowest level for nine weeks, Butterfill pointed out.
“While Grayscale’s outflows continue to decelerate, we have also seen a deceleration in inflows from new issuers, which saw only $126 million in inflows last week, compared to $254 million the week prior,” Butterfill added.
BlackRock’s IBIT spot bitcoin ETF witnessed three days of zero flows last week as its 71-day inflow streak — putting it in the top ten ETFs of all time — came to an end. Fidelity’s FBTC and Valkyrie’s BRRR also witnessed their first daily outflows last week.
Overall inflows for the spot bitcoin ETFs have slowed considerably since peaking at a net daily inflow of $1.05 billion on March 12, according to The Block’s data dashboard.
US-based bitcoin products continue to dominate
Regionally, the U.S.-based crypto investment funds continued to dominate, representing $388 million in weekly outflows. However, year-to-date inflows remain at a record $13.6 billion, Butterfill noted. Germany and Canada-based products saw outflows of $16 million and $32 million, respectively, while Switzerland and Brazil bucked the trend, registering $5 million and $4 million worth of inflows.
Bitcoin products witnessed the most outflows last week, totaling $423 million, followed by $38 million from ether-based funds. However, altcoin investment products, such as Solana, Litecoin and Chainlink funds, saw inflows of $4 million, $3 million and $2.8 million, respectively.
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