Digital Asset Investment Products Experience Fourth Consecutive Week of Outflows: Coinshare’s Report

CoinShares’ latest report unveils that digital asset investment products have recorded outflows for the fourth consecutive week, totalling $251 million. This comes after the previous week’s outflow of $156 million. 

The only one that stood out is Ethereum, breaking its seven-week streak of outflows, registering inflows totalling $30 million.

ETF Outflows and Inflows

Last week marked the substantially measurable outflows that occurred from the newly issued exchange-traded funds (ETFs) in the United States, the CoinShares report noted. These new ETFs saw outflows totalling $156 million. 

According to the report, the recent 10% drop in price may have triggered automatic sell orders, because the average purchase price for these ETFs since their launch is estimated at $62,200 per Bitcoin. 

Grayscale Investments LLC, one of the largest providers of digital asset investment products, reported outflows of $277 million. 

Other notable providers, such as Fidelity ETFs/USA and ARK 21 Shares/USA, experienced outflows of $131 million and $84 million, respectively. However, “other” providers, not listed by name, reported significant inflows of $398 million.

However, there was a bright spot in the crypto-ETF market last week. 

“The successful launch of spot-based Bitcoin and Ethereum ETFs in Hong Kong saw US$307m inflows in the first week of trading,” the CoinShares report stated. This significant inflow was one of the few positive outcomes in a week marked by considerable outflows.

One thing to keep in mind is that the U.S. is not the only place ETFs have witnessed significant outflows. Although the outflows primarily took place in the United States, other regions also witnessed significant outflows. 

While the U.S. saw a substantial outflow of $504 million, Canada, Switzerland, and Germany have also registered $9.6 million, $9.8 million, and $7.3 million of total outflows this previous week, respectively. 

Bitcoin and Ethereum Inflows

Standing up to expectations, Bitcoin bore the brunt of the outflows, with $284 million in outflows last week. Thanks to Ethereum’s performance, we saw some relief as ETH experienced good inflows of $30 million, breaking its seven-week outflow streak. 

Avalanche, Cardano, and Polkadot secured attracting investments while many other altcoins saw substantial inflows.