Grayscale’s outflows slow as investor interest in altcoins like Solana, Polkadot rises Grayscale’s outflows slow as investor interest in altcoins like Solana, Polkadot rises
Bitcoin and Ethereum saw over $450 million worth of outflows combined last week.
2 min read
Updated: Jul. 8, 2024 at 11:43 pm UTC
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Inflows into the Newborn Nine ETFs fell by more than 50% during the past week to $126 million from $254 million, according to CoinShares weekly report.
Per the report, these reduced inflows contributed to the third consecutive week’s outflow of $435 million—the largest outflow since March—that major crypto-related investment products recorded during the week.
Grayscale lead despite ‘decelerating outflows’
A breakdown of the flows showed that Grayscale’s GBTC remains responsible for most outflows, with $440 million exiting the product last week.
However, this marks GBTC’s lowest weekly outflow in nine weeks and a sign that outflows were decelerating. Nonetheless, the total outflows from GBTC on the year-to-date metric have surpassed $17 billion.
James Butterfill, CoinShares head of research, added:
“While Grayscale’s outflows continue to decelerate, we have also seen a deceleration in inflows from new issuers, which saw only $126 million in inflows last week, compared to $254 million the week prior.”
The weakening inflows also resulted in a decline in trading volume, which fell to $11.8 billion from $18 billion.
Last week, major ETF issuers like BlackRock and Fidelity recorded several days of zero flows. Market observers interpreted this trend as indicative of a waning investors’ interest in the asset class.
Altcoins draw interest
Investment products related to digital assets like Solana, XRP, Cardano, Polkadot, and Chainlink saw inflows last week. The CoinShares report pegged the cumulative inflows into these assets at more than $25 million.
On the other hand, Ethereum continued its outflow trend, experiencing an additional $38.4 million in outflows, bringing the total for the month to $123.8 million. The year-to-date flow is a negative $50 million.
Remarkably, the prevailing bearish sentiments in the market have attracted the bears who added $1.3 million to short Bitcoin investment products.
Disclaimer: CryptoSlate has received a grant from the Polkadot Foundation to produce content about the Polkadot ecosystem. While the Foundation supports our coverage, we maintain full editorial independence and control over the content we publish.
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Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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In this article
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,346.26
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$245.983
Solana is a high-performance blockchain platform that utilizes a unique consensus algorithm called “Proof of History” to achieve fast transaction speeds and low fees.
Polkadot
$5.91862
Polkadot development is on track to deliver the most robust platform for security, scalability, and innovation.
BlackRock
BlackRock, synonymous with global asset management, is an American multinational investment management corporation based in New York City.
Fidelity Investments
Fidelity Investments Inc., commonly referred to as Fidelity, is a multinational financial services corporation based in Boston, Massachusetts.
The Grayscale Bitcoin Trust (GBTC) is a digital currency investment product that provides investors with access to Bitcoin through traditional investment channels.
