Crypto Fund Outflows Nearly $25M as GBTC Sales Erode Bitcoin Prices
The latest CoinShares publication reveals a rise in Bitcoin outflows in the previous week despite the trading volume for the spot Bitcoin exchange-traded funds (ETFs) testing $11.8 billion. The report by Europe’s crypto assets manager reveals that institutional Bitcoin investment products suffered minor outflows in the past seven days.
The CoinShares publication on Monday, January 22, revealed that institutional investors are minimizing their exposure to Bitcoin. Such manifests in BTC investment products registering weekly outflows of $24.7 million.
Spot Bitcoin ETF Fuel Digital Assets Meltdown
The data illustrates that heavy selling dominated the week’s activities amid the spot Bitcoin ETF-driven meltdown of the digital assets. Institutions withdrew $20.8 million worth of investments from crypto products since January 11, though, with outflows slowing towards January 19.
The CoinShares report indicates that trade volume involving ETF products witnessed a sharp increase, with the aggregate amount testing $11.8 billion. The trade volume represents 63% of the Bitcoin volumes across all trusted exchanges. The figure shows that the exchange-traded product (ETP) activity is presently dominating the overall trading.
While the digital asset investment products suffered minor outflows in the past week, the CoinShares report indicates that the higher-cost spot issuers based in the US suffered massive outflows as investors shifted to the new issuers.
CoinShares lead research executive James Butterfill indicated that incumbents classified as the higher cost issuers saw $2.9 billion outflows while the newly issued ETFs recorded $4.13 billion inflows since their unveiling.
Investors seized the price weakness as the opportunity to embrace the short-Bitcoin investment products. The CoinShares report demonstrates that the short BTC investment products realized $12.7 million in inflows in the week, taking the monthly-to-date net inflows to $16 million.
Decreasing Appetite for Ether and Bitcoin
The decline in the institutional demand for Bitcoin coincides with the slipping appetite for Ether (ETH) in the week. The latter suffered $13.6 outflows in the period under consideration taking the year-to-date inflows to $41.9 million.
A decline in the appetite for Solana is manifested in the report with $8.5 million outflows in the week, taking total monthly-to-date outflows to $13.3 million.
The CoinShares data illustrates that spot Bitcoin ETFs are delivering a downtrend steam for the cryptocurrency sector. The preference for the spot Bitcoin ETFs is witnessing a decline in the institutional appetite for the spot Bitcoin ETFs.
CoinShares acknowledged that the preference for spot Bitcoin ETFs saw the total market capitalization for the crypto industry slip by 3.4% in the past 24 hours to realize $1.59 trillion on Monday, January 22.
Global Crypto Market Decline
A glance at the global crypto industry at 0500 UTC shows that while the sector realized a rebound since CoinShares published the report, the market capitalization is 2.6% down, restricting it to $1.65 trillion in the past 24 hours.
Further scrutiny of the crypto sector’s activity in the past 24 hours reveals that the industry realized $79.2 billion in daily trading volume. Bitcoin registered $24.863 billion in trade, while Ethereum attained $14.277 billion, trailed by Solana in third place with $2.777 billion, as per CoinGecko.
Bitcoin dominance remained at 47.5% of the day’s activity, while Ethereum accounted for 17%. The CoinGecko data shows that the largest gainers within the crypto industry were the Polkadot and Algorand Ecosystem cryptos.
