A new report from digital asset fund manager CoinShares reveals that investors are withdrawing funds from high-profile crypto funds following the launch of spot Bitcoin exchange-traded funds (ETFs) earlier this month. According to CoinShares, investors pulled $21 million out of crypto funds issuers last week.
CoinShares suggests that investors seeking exposure to digital assets are shifting their money into the new Bitcoin ETFs. The report notes that “incumbent, higher cost issuers suffered in the U.S., seeing $2.9 billion of outflows, while newly issued ETFs have now seen a total of $4.13 billion inflows since launch.”
In contrast, short Bitcoin products, which bet on the price of crypto going down, received inflows of around $13 million, as investors bet on further price weakness from Bitcoin. Other altcoin funds providing exposure to Ethereum and Solana also experienced outflows, reaching $14 million and $8.5 million respectively.
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 marked a significant milestone for the cryptocurrency industry. Of the 10 ETFs currently trading, BlackRock’s iShares Bitcoin Trust is the best performer, with $1.3 billion in assets under management.
However, Grayscale, which manages billions of dollars worth of crypto assets, has experienced significant outflows. The Grayscale’s Bitcoin Trust (GBTC) recently converted to a Bitcoin ETF, and investors have been cashing out rapidly. CoinShares reports that over $2.2 billion has been withdrawn from GBTC since its conversion.
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