Digital Asset Investment Products Record $21M Outflows Despite $11.8B Trading Volume

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Digital asset funds have recorded a minor $21 million in outflows while trading volumes surged past $11 billion as crypto prices plummeted in the past seven days.

CoinShares’ Digital Asset Weekly Fund Flows report on Jan 22 shows a slight decline in bullish momentum although inflows were recorded across a range of products in several jurisdictions.

Incumbent, higher cost Bitcoin issuers suffered in the US, seeing US$2.9bn of outflows, while newly issued ETFs have now seen a total of US$4.13bn inflows since launch.https://t.co/21zEC4Wlgf

— James Butterfill (@jbutterfill) January 22, 2024

Following the United States Securities and Exchange Commission’s (SEC) approval of spot Bitcoin (BTC) ETFs, institutional products have recorded massive entries associated with the market leader.

The total outflow of $20.8 million now brings the yearly inflows to $1.356 billion while Assets Under Management (AUM) stands at $52.2 billion around the same level as in December.

Blockchain equities posted positive figures of $156 million in the last seven days taking the run in the past nine weeks to $767 million amid a slight market correction.

Multi-assets saw inflows of $9.4 million taking up gains in January to $20.7 million as some altcoins held on to their gains notched in the last quarter of 2023.

Per the report, weekly trading volumes were seven times higher than last year’s average. The increase comes as institutional investors gain more exposure to the market on the back of several spot BTC ETF approvals.

A major narrative throughout the week saw outflows from higher-cost ETFs and inflows from cheaper options. Higher-cost issuers have seen exits hit $2.9 billion in the United States.

This migration of assets can also be seen as funds left European jurisdictions as most ETFs approved on Jan 11 offer more competitive rates.

“These newly issued ETFs have now seen a total of $4.13 billion inflows since launch, outstripping that lost from the higher cost incumbent ETPs. Investors saw a recent price weakness as an opportunity to add to short Bitcoin investment products, seeing $13 million inflows.” 

Bitcoin and Altcoin Digital Assets Post Losses

Bitcoin products recorded minor losses of $25 million, taking monthly inflows back to $1.27 billion, a figure seen as a sequel to the approval of spot BTC ETFs.

At press time, Bitcoin trades at $40,619, a 4.66% drop in the last seven days wiping off gains recorded over the past month.

The trading volume around the asset marks 63% of all exchanges showing the bullish nature of ETPs at the moment.

Altcoins posted similar outflows as top assets like Ethereum (ETH), Solana (SOL) and Litecoin (LTC) saw losses as asset prices declined within the same period.

Ethereum products recorded outflows of $13.6 million while Solana and Litecoin posted $8.5 million and $1.5 million respectively.

The three assets have seen prices plunge in the last seven days. Dogecoin is the only asset in the top 20 cryptocurrencies by market capitalization to be above water in the same period.

Geographically, the United States recorded $263 million in inflows while Canada and Germany recorded $165.4 million and $98.4 million in outflows respectively.

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