- Cryptocurrency investment products experienced a slowdown in global demand, reporting $21 million in outflows last week, as revealed by a CoinShares report. The preceding week had witnessed a significant surge, with crypto funds receiving $1.25 billion in inflows following the introduction of 10 spot Bitcoin exchange-traded funds (ETFs) in the US. However, the latest week saw a reversal, primarily led by Grayscale Investment’s spot Bitcoin ETF (GBTC), which recorded withdrawals amounting to $2.2 billion. This decline follows the US Securities and Exchange Commission's approval of spot Bitcoin ETFs on January 10, resulting in the launch of nine new funds.
- Since their introduction, newly issued Bitcoin ETFs have attracted substantial inflows, reaching $4.1 billion. The ProShares Bitcoin Strategy ETF (BITO), the leading futures-based Bitcoin ETF, experienced net outflows of $94 million since the initiation of spot Bitcoin ETFs earlier this month. As a result, BITO shares have declined to 19.57, marking their lowest level since early December.
Why it matters
Notably, BlackRock Inc. and Fidelity Investments have emerged as leaders in this trend, with their IBIT and FBTC funds capturing approximately two-thirds of all inflows since the launch of the nine new funds.
