Crypto ETPs trading volume plummets 50% as BlackRock surpasses Grayscale News โธ Bitcoin โธ Investments
Crypto ETPs trading volume plummets 50% as BlackRock surpasses Grayscale
Crypto ETPs saw modest inflows of $30 million last week.
2 min read
Updated: Aug. 19, 2024 at 2:16 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto investment products experienced a lukewarm performance last week, with modest inflows of $30 million, according to CoinShares weekly report.
The weekly trading volume for these products also plummeted nearly 50% from the previous week, dropping to $7.6 billion.
James Butterfill, CoinShares‘ head of research, explained that these numbers were the market’s reaction to recent macroeconomic data that implied the Fed was less likely to cut interest rates by 50 basis points in September.
Solana sees record outflows
Bitcoin regained its dominance, attracting $42 million in inflows. However, its month-to-date flow remains negative, with a deficit of $320 million.
Similarly, Ethereum continued its multi-week streak of inflows, drawing in a modest $4.2 million, bringing its total monthly flows to nearly $166 million.
Additionally, Multi-asset products also saw positive momentum, with $21 million in inflows. Other altcoins, including XRP, reported gains as well.
Solana, however, faced significant outflows, with investors pulling a record $39 million from the asset. This was largely due to declining network fundamentals and a sharp drop in memecoin trading. Solana’s price reflected this bearish trend, falling 6% over the past week to $141.
Meanwhile, Short Bitcoin products recorded nearly $1 million in outflows, marking their second consecutive week of decline. This indicates that investors remain optimistic about Bitcoin’s short-term price potential.
BlackRock usurps Grayscale
Butterfill also explained that the modest inflow figures concealed the fact that established ETP providers like Grayscale were losing market share to issuers of newer investment products like BlackRock.
A closer look at specific providers reveals a more nuanced picture. Grayscale, a well-established provider of Bitcoin and Ethereum ETFs, saw continued outflows last week, with over $300 million exiting its products. This brought its month-to-date flows to a negative of more than $1 billion and dragged the total value of assets under its management to $20.5 billion.
In contrast, new entrants like BlackRock iShares and Fidelity’s FBTC reported strong inflows. Notably, BlackRock’s ETF saw inflows of $147 million last week, and its AUM has now risen to $21.677 billion, the highest in the sector.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
XRP 
CoinShares 
Grayscale Investments 
BlackRock 
Fidelity Investments 
Grayscale Bitcoin Trust Grayscale Ethereum Mini Trust Grayscale Ethereum Trust iShares Bitcoin Trust iShares Ethereum Trust ETF 
Fidelity Wise Origin Bitcoin Trust Author 
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
$3,554.44
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$221.960
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.
XRP
$2.51472
Theย XRP Ledgerย is a decentralized cryptographic ledger powered by a network of peer-to-peer servers.
Grayscale Investments
Established in 2013 by Digital Currency Group, Grayscale Investments is a trusted authority on digital currency investing and cryptocurrency asset management.
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.
The Grayscale Ethereum Mini Trust (Ticker: ETH) is a pioneering investment vehicle designed to provide investors with exposure to Ethereum (ETH) through a regulated security format.
The Grayscale Ethereum Trust (ETHE) by Grayscale is an investment vehicle designed to offer investors exposure to Ethereum, one of the leading cryptocurrencies by market capitalization.
The BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The iShares Ethereum Trust ETF (ETHA) by BlackRock is an innovative investment product designed to provide investors with exposure to Ethereum, one of the leading cryptocurrencies.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.
