Digital Asset Investment Products Witness Massive Outflows
Data from CoinShares reveals a significant shift in digital asset investment trends, characterized by a notable departure from the previous seven weeks of inflows, which had amassed a substantial $12.3 billion.
The recent week marked a reversal, with outflows totaling $942 million, notably driven by a significant withdrawal of $2 billion from the Grayscale Bitcoin ETF (GBTC).
Cointucky Derby update for the #bitcoin ETFs. Last week was -$888 million for the group. Outflows were likely related to bankruptcy — they were mostly Gemini/Genesis selling. *Expecting* that to slow over the next ~week. They had a total of ~$3.9 bln of $GBTC to sell. pic.twitter.com/qXiog228z8
— James Seyffart (@JSeyff) March 25, 2024
While new ETF issuers in the US managed to attract $1.1 billion during the same period, offering some relief against GBTC’s outflows, analysts attribute the overall shift to bankruptcy proceedings, particularly involving selling activities by entities such as Gemini and Genesis.
READ MORE: Expert Forecasts Growing Demand for Bitcoin in Coming Years
With approximately $3.9 billion worth of Grayscale Bitcoin Trust ($GBTC) to divest, the market anticipates a slowdown in outflows in the upcoming weeks.
In response to concerns over high fees, Grayscale’s CEO, Michael Sonnenshein, has announced plans to address this issue, suggesting potential adjustments to improve investor sentiment and mitigate further outflows.
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.
