Digital Asset Investment Products Witness $500 Million Outflows; Bitcoin ETFs Remain in Focus

Last week, digital asset investment products experienced a $500 million outflow, with Bitcoin-indexed exchange-traded products (ETPs) accounting for nearly 96% of the total outflows, according to asset manager CoinShares’ recent publication.

Bitcoin, a key player in this scenario, saw outflows of $479 million, indicating that investors are cautious. Conversely, short positions in Bitcoin saw increased interest, with total inflows approaching $11 million.

Ethereum, Polkadot, and Chainlink all experienced outflows of $39 million, $0.7 million, and $0.6 million, respectively.

Despite the negative trend, Solana-indexed investment products saw an increase of $3 million in assets under management.

Examining regional dynamics, the majority of these outflows were concentrated in the United States, Switzerland, and Germany, accounting for $409 million, $60 million, and $32 million, respectively.

The United States has been a focal point of these shifts, with Grayscale, a leading ETF issuer, reporting significant outflows totaling $5 billion since January 11, including $2.2 billion last week.

Despite the outflows, there is a potential silver lining: the pace appears to be slowing, indicating a possible stabilization in the near term.