- Crypto investment funds recorded nine-figure outflows last week.
- Bitcoin dominated outflows as Grayscale’s GBTC exodus significantly outpaced inflows to new funds.
- While most altcoins also recorded outflows, Solana managed to buck the trend.
Nearly three weeks later, approved spot Bitcoin ETFs have yet to have the market impact many anticipated as mixed flows continue to weigh on investor sentiment. The biggest concern has been billions of dollars in outflows from Grayscale’s converted ETF, GBTC. While some of the flows can be attributed to investors fleeing to products with lower fees, some also represent profit-taking for investors who had taken advantage of the product’s previous discount to its net asset value (NAV).
Despite showing signs of slowing down toward the end of last week, GBTC outflows significantly edged out inflows to other ETFs, fueling negative sentiment and driving nine figures net outflows for the week.
Grayscale Outflows Trump Inflows to the Competition
In the past week, crypto funds recorded net outflows of $500 million, according to CoinShares’ most recent digital asset fund flow report released on Monday, January 29. Bitcoin was unsurprisingly the primary focus of outflows, with $479 million.
Last week’s crypto fund flows by issuer
The net outflows come as GBTC saw $2.2 billion in outflows in the past week, while other newly issued U.S. ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, saw a combined $1.8 billion inflow. With Grayscale’s outflows weighing on market sentiment, other funds outside the U.S., including CoinShares’ XBT, also added to the outflows.
Meanwhile, Bitcoin was not the only subject of outflows as altcoin funds also primarily saw outflows aside from one key exception.
Solana Bucks the Trend
Like Bitcoin, Ethereum also recorded significant outflows with $39 million. At the same time, funds related to Polkadot and Chainlink saw minor outflows of about $700,000 and $600,000, respectively.
Last week’s crypto fund flows by asset
Amid the sea of red, however, Solana managed to buck the trend with related funds receiving net inflows of $3 million. Similarly, blockchain equities hit a ten-week run of inflows with $17 million, bringing the total to $784 million.
On the Flipside
- Despite the high net outflows from crypto funds, data suggests that Grayscale’s outflows are slowing.
- Other approved spot Bitcoin ETFs continue to see significant inflows.
Why This Matters
Last week’s net flows to crypto funds highlight the sheer magnitude and impact of outflows from Grayscale’s GBTC.
Read this for more on the GBTC exodus:
Grayscale Bitcoin Sell-Off Hits $5B Following $450M BTC Dump
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