Last Week’s Financial Landscape: Bitcoin ETFs Flourish, Drawing Billions, While Other Digital Assets Face Outflows

Crypto News- In a week of contrasting fortunes for the digital asset market, Grayscale suffered a notable setback with over $2 billion withdrawn, as per CoinShares’ latest report. However, the newly introduced US ETFs painted a different picture, experiencing a surge in investments, totaling $1.8 billion last week and reaching $5.94 billion since their launch on January 11th, 2024.

Last Week’s Financial Landscape: Bitcoin ETFs Flourish, Drawing Billions, While Other Digital Assets Face Outflows

The overall landscape saw a decrease of $500 million in digital asset investment products, with Bitcoin at the forefront of outflows, losing $479 million. Interestingly, short-bitcoin products saw a contrary trend, attracting $10.6 million in additional inflows.

Altcoins faced mixed fortunes, with Ethereum witnessing a withdrawal of $39 million, while Polkadot and Chainlink observed withdrawals of $0.7 million and $0.6 million, respectively. Solana, on the other hand, emerged as an outlier, garnering $3 million in inflows.

Digital Asset Market Swings: Grayscale Faces 2 Billion Dollars Withdrawal, US ETFs Thrive with 1.8 Billion Dollars Inflows

Blockchain equities saw increased investments, attracting $17 million in inflows. Geographically, the United States, Switzerland, and Germany experienced the highest outflows, totaling $409 million, $60 million, and $32 million, respectively. The recent price drops, fueled by substantial outflows from Grayscale, likely influenced further withdrawals in these regions.

Despite Grayscale’s $2.2 billion outflows last week, data suggests a gradual decrease in the rate of outflows as the week progressed. In contrast, newly introduced US ETFs attracted $1.8 billion in inflows last week, accumulating a total of $5.94 billion since their launch. The net result, including Grayscale’s inflows since inception, stands at a positive inflow of $807 million.

CoinShares highlighted that while positive flows were observed, much of the price decline can be linked to Bitcoin seed capital being acquired before January 11. On a global scale, Brazil saw inflows of $10.3 million, and Australia received $0.3 million in investments during the same period.