A recent CoinShares report indicates that investment outflows from digital asset products amounted to $21 million last week. Despite this modest outflow, Bitcoin (BTC) exhibited substantial trading volumes, reaching $11.8 billion—seven times the average weekly trading volume observed in 2023.
Geographically, the United States witnessed capital inflows totaling $263 million, while Canada and Europe experienced outflows of $297 million. Analysts attribute these trends to asset migration towards the United States.
Bitcoin product outflows were relatively minor at $25 million, but the trading volumes of $11.8 billion represented 63% of all BTC volumes on reputable exchanges. Ethereum (ETH) and Solana (SOL) based products saw outflows of $14 million and $8.5 million, respectively.
Notably, Exchange-Traded Product (ETP) activity currently dominates overall trading activity. Established issuers with higher costs in the U.S. have been impacted, with capital outflows totaling $2.9 billion since the launch of spot Bitcoin ETFs. Despite this, newly issued ETFs have gained $4.13 billion, surpassing losses from more expensive existing ETPs.
Investors perceived the recent price decline as an opportunity to add to short Bitcoin investment products, resulting in an influx of $13 million. Net inflows into U.S. ETFs have reached $1.2 billion since their launch.
Senior IT architect at BTCData, Chris Jay Terry, predicts a further outflow of $25 billion from the largest spot Bitcoin ETF, GBTC. In the first six days of trading, GBTC saw a net outflow of $2.8 billion. Experts at JPMorgan Chase anticipate that the fund may lose around $13 billion, with $10 billion being transferred by investors to other products within the same sector.
The crypto investment landscape remains dynamic, with high trading volumes and shifting capital flows, reflecting the evolving sentiment and strategies of market participants.
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