A recent report from digital asset fund manager CoinShares unveils a trend of investors withdrawing funds from prominent crypto funds following the introduction of spot Bitcoin exchange-traded funds (ETFs) earlier this month. According to CoinShares, a total of $21 million was pulled out of crypto fund issuers in the past week.
The report suggests that investors seeking exposure to digital assets are reallocating their funds into the newly launched Bitcoin ETFs. CoinShares highlights that established, higher-cost issuers in the U.S. experienced significant outflows, totaling $2.9 billion, while recently introduced ETFs have attracted a total of $4.13 billion in inflows since their launch.
In contrast, products betting against Bitcoin’s price, known as short Bitcoin products, saw inflows of approximately $13 million, indicating investor speculation on further price declines. Other altcoin funds, providing exposure to cryptocurrencies like Ethereum and Solana, also witnessed outflows, with amounts reaching $14 million and $8.5 million, respectively.
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 marked a significant milestone for the cryptocurrency industry. Among the 10 currently trading ETFs, BlackRock’s iShares Bitcoin Trust stands out as the top performer, managing $1.3 billion in assets.
However, Grayscale, a major player managing billions of dollars in crypto assets, has faced substantial outflows. The conversion of Grayscale’s Bitcoin Trust (GBTC) into a Bitcoin ETF has led to rapid investor withdrawals, with CoinShares reporting a total of over $2.2 billion withdrawn from GBTC since its conversion.
