Global Bitcoin ETP holdings over 900,000 BTC as Grayscale outflows ‘subside’ Global Bitcoin ETP holdings over 900,000 BTC as Grayscale outflows ‘subside’
Grayscale's outflow continue to dominate weekly outflows, despite data indicating that trend might be receding.
2 min read
Updated: Jan. 29, 2024 at 4:20 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Crypto investment products saw their second consecutive week of outflow this year, with $500 million leaving the funds, according to CoinShares’ latest weekly report.
Bitcoin dominate
Bitcoin investment products experienced significant outflows last week, with a total withdrawal of $479 million.
The top cryptocurrency has faced significant headwinds since the U.S. Securities and Exchange Commission (SEC) approved spot exchange-traded funds (ETF) in the country. Its value has declined by more than 12% to around $42,500 as of press time.
This downturn has spurred bearish investors to turn to short BTC products, resulting in nearly $11 million in inflows last week.
Conversely, prominent alternative digital assets like Ethereum, Polkadot, and Chainlink also saw outflows, with $39 million, $700,000, and $600,000, respectively. However, Solana defied this trend by recording a modest inflow of $3 million.
Across regions, U.S.-based funds dominated the scene, experiencing net outflows of $409 million. Switzerland and Germany followed with outflows of $60 million and $32 million, respectively. Brazil emerged as the exception, with the most significant net inflows of $10.3 million.
“Recent price declines prompted by the substantial outflows from the incumbent ETF issuer (Grayscale) in the U.S. totaling $5 billion, have likely prompted further outflows from other regions,” CoinShares Head of Research James Butterfill explained.
Grayscale outflows ‘subside’
Grayscale’s GBTC sustained significant outflows, witnessing a withdrawal of $2.2 billion last week. Notably, this follows a substantial outflow of $2.8 billion two weeks ago, culminating in a total flow of $5 billion since the SEC approval of spot ETFs.
However, recent data indicates a diminishing trend in the outflows, with Butterfill observing a gradual reduction in daily total outflows throughout the past week.
“The outflows in Grayscale aren’t pretty but it looks like they are beginning to subside,” Butterfill said.
In contrast, the newborn nine spot BTC ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, experienced robust inflows amounting to $1.8 billion. Since their launch, these ETFs have collectively attracted approximately $5.94 billion in inflows, resulting in a net inflow of $807 million when factoring in GBTC outflows.
Globally, crypto Exchange-Traded Products (ETPs) currently hold 900,000 BTC, valued at an estimated $36.2 billion, per ByteTree data. Notably, GBTC constitutes over 50% of this total, boasting a balance of 502,000 BTC, equivalent to an estimated $21.1 billion.
Meanwhile, IBIT and FBTC’s BTC holdings have flipped ProShares’ futures BTC ETF (BITO) despite trading for fewer days.
Mentioned in this article
Bitcoin 
Ethereum 
Solana 
Chainlink 
Grayscale Investments 
BlackRock 
Fidelity Investments 
Grayscale Bitcoin Trust iShares Bitcoin Trust 
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
$3,428.38
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Solana
$194.289
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.
Chainlink
$24.4046
Chainlink is a decentralized oracle network that connects smart contracts on the blockchain to real-world data.
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 BlackRock Bitcoin ETF, known as the iShares Bitcoin Trust (IBIT), is an investment fund that provides regulated exposure to Bitcoin for investors.
The Fidelity Wise Origin Bitcoin Trust (FBTC) is a spot Bitcoin ETF that offers investors exposure to the price of Bitcoin.