Crypto ETPs See $500,000,000 in Institutional Outflows in One Week, According to CoinShares

Digital assets manager CoinShares says institutions are pulling out of crypto exchange-traded products (ETPs) to the tune of $500 million weeks after the U.S. Securities and Exchange Commission (SEC) approved a spot BTC exchange-traded fund (ETF) earlier this month.

In its latest Digital Asset Fund Flows report, CoinShares finds that even though crypto investment products saw massive outflows last week, Grayscale outflows are slowing down a bit.

“Digital asset investment products saw significant outflows from a global perspective, totaling US $500 million…

Recent price declines prompted by the substantial outflows from the incumbent ETF issuer (Grayscale) in the US totaling US $5 billion (since 11th January 2024), have likely prompted further outflows other regions. The outflows in Grayscale last week totaled US$2.2 billion, although data suggests outflows are beginning to subside as the daily total continued to reduce towards over the week.”

Source: CoinShares

However, recently issued US-based ETFs enjoyed inflows of $1.8 billion over the last seven days. Such ETFs have seen nearly $6 billion in inflows since their approval by the SEC earlier this month.

“Meaning on a net basis, including Grayscale inflows since launch now total US $807 million. We believe that much of the price falls, despite these positive flows, was due to Bitcoin seed capital being acquired prior to 11th January.”

BTC products saw $478.9 million in outflows, while Ethereum (ETH) products suffered $38.8 million in losses. XRP, Cardano (ADA) and Litecoin (LTC) products lost $0.4, $0.4, and $0.2 million, respectively, while Solana (SOL) products brought in $3 million worth of inflows.

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