Global Crypto Investment Products Witness Third Consecutive Week of Outflows, Grayscale Leads Decline

Global Crypto Investment Products Witness Third Consecutive Week of Outflows, Grayscale Leads Decline

Last week marked the third consecutive period of net outflows for global crypto investment products managed by firms like Ark Invest, Bitwise, Fidelity, Grayscale, ProShares, and 21Shares, according to the latest report from CoinShares. A total of $435 million exited these products, marking the largest outflow since a nearly $1 billion record was set last month amidst a correction in bitcoin’s price after it hit an all-time high of $73,836 on March 14.

CoinShares’ Head of Research, James Butterfill, noted that trading volumes in exchange-traded products dropped to $11.8 billion last week from $18 billion the previous week, coinciding with a 6% decline in bitcoin prices.

The bulk of the outflows came from Grayscale, particularly from its Bitcoin Trust product, which underwent conversion into a spot bitcoin exchange-traded fund in January. Last week alone, Grayscale’s GBTC saw outflows of $454.1 million, although Butterfill highlighted that this was the lowest level in nine weeks.

While Grayscale’s outflows have been slowing, there has also been a deceleration in inflows from new issuers, with only $126 million coming in last week compared to $254 million the week before, according to Butterfill.

BlackRock’s IBIT spot bitcoin ETF experienced zero flows for three consecutive days last week, marking the end of its 71-day streak of inflows, which had placed it among the top ten ETFs of all time. Fidelity’s FBTC and Valkyrie’s BRRR also saw their first daily outflows last week.

Overall, inflows for spot bitcoin ETFs have significantly slowed since peaking at a net daily inflow of $1.05 billion on March 12, as reported by The Block’s data dashboard.

On a regional level, U.S.-based crypto investment funds continued to lead, with $388 million in weekly outflows. However, year-to-date inflows remain at a record $13.6 billion, noted Butterfill. Meanwhile, Germany and Canada-based products saw outflows of $16 million and $32 million, respectively, while Switzerland and Brazil bucked the trend with inflows of $5 million and $4 million, respectively.

Bitcoin products saw the most significant outflows last week, totaling $423 million, followed by $38 million from ether-based funds. However, investment products in altcoins such as Solana, Litecoin, and Chainlink saw inflows of $4 million, $3 million, and $2.8 million, respectively.