$500M Exits Crypto ETPs After SEC Approves BTC ETF
CoinShares, the digital assets manager, reports a significant shift in institutional behavior regarding crypto exchange-traded products (ETPs), with withdrawals totaling $500 million.
This trend follows the recent approval by the U.S. Securities and Exchange Commission (SEC) of a spot Bitcoin (BTC) exchange-traded fund (ETF) earlier this month.
According to CoinShares’ latest Digital Asset Fund Flows report, there has been a notable global outflow of $500 million from digital asset investment products. Notably, Grayscale, the incumbent ETF issuer in the U.S., experienced substantial outflows totaling $5 billion since January 11, 2024. These outflows likely triggered further withdrawals in other regions. Although Grayscale’s outflows amounted to $2.2 billion last week, data indicates a gradual reduction in daily outflows throughout the week.
Despite the overall negative trend, newly issued U.S.-based ETFs have seen positive inflows of $1.8 billion over the past seven days. Since the SEC’s approval earlier this month, these ETFs have attracted nearly $6 billion in total inflows.
READ MORE: Renowned Trader John Bollinger’s Latest Take on Bitcoin
On a net basis, considering Grayscale inflows since launch, the total stands at $807 million. CoinShares attributes part of the recent price declines to the acquisition of Bitcoin seed capital before January 11.
Breaking down specific cryptocurrency outflows, BTC products saw withdrawals amounting to $478.9 million, while Ethereum (ETH) products experienced losses of $38.8 million. XRP, Cardano (ADA), and Litecoin (LTC) products incurred losses of $0.4 million each, whereas Solana (SOL) products attracted $3 million in inflows.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
