Litecoin

Mover

Bitcoin

Spot

Source: AdobeStock 
Spot Bitcoin exchange-traded fund (ETF) is garnering rising interest, but crypto fund incumbents are on the losing side of the equation. 
CoinShares’ <a href="https://blog.coinshares.com/volume-166-digital-asset-fund-flows-weekly-report-3c59276b9833">Digital Asset Fund Flows Weekly Report</a> on Jan 22 disclosed a substantial $4.13 billion in inflows since the launch of the first spot Bitcoin ETF on January 11, following approval from the US <a href="https://cryptonews.com/news/sec-postpones-decision-on-fidelitys-spot-ethereum-etf.htm">Securities and Exchange Commission</a> (SEC). 
 Digital asset investment saw minor outflows last week, totalling US$21m. 
 Trading volumes in <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> are very high, totalling US$11.8bn. 
– Issuer dynamics – Higher cost issuers: US$2.9bn outflows Newly issued ETFs: US$4.13bn inflows (since launch) Net inflows into US ETFs… <a href="https://t.co/sYZAD2hRfB">pic.twitter.com/sYZAD2hRfB</a> 
— CoinShares (@CoinSharesCo) <a href="https://twitter.com/CoinSharesCo/status/1749444889975181472?ref_src=twsrc%5Etfw">January 22, 2024</a> 
The report also highlights a significant drawback for numerous crypto fund incumbents, including Grayscale. 
According to the digital asset investment company, a substantial $2.9 billion in outflows from traditional crypto fund managers occurred within the last two weeks, with the funds transferred to spot Bitcoin ETFs. 
Examining the major losers, CoinShares identifies <a href="https://cryptonews.com/news/grayscales-bitcoin-trust-gbtc-outpaces-majority-of-etfs-with-half-a-billion-in-trading-volume.htm">Grayscale</a> as the major negative, with the digital asset investment firm losing $2.23 billion in a week. Its month-to-date (MTD) outflows stood at $2.8 billion, while it still holds more than $30 billion in <a href="https://cryptonews.com/news/crypto-assets-under-management-surged-14-as-daily-trading-volumes-recorded-33-increase-in-december.htm">assets under management</a> (AUM). Source: CoinShares 
Other firms, including <a href="https://cryptonews.com/news/proshares-launches-six-ether-futures-etfs-expanding-crypto-etf-market.htm">ProShares ETFs</a> and Purpose Investments Inc. ETF, also lost significant chunks in digital funds. ProShares ETFs saw outflows of $58.4 million, while Purpose Investments Inc. ETF recorded $101.9 million in outflows within a week. 
Giving a reason for this sudden change, CoinShares pinpoints the competitive fees newly listed spot Bitcoin ETFs offer to investors. 
While companies like Grayscale and ProShares charge 1.5% and 0.95% in management fees respectively, new spot Bitcoin ETFs levy investors a considerably cheaper fee of 0.2% to 0.5%. These competitive rates have since prompted several crypto ETF investors to rapidly switch allegiance following the SEC’s approval. 
<h2 id="bitcoin-the-biggest-mover">Bitcoin, the Biggest Mover</h2> 
 In every spectrum of comparison, Bitcoin continues to lead the virtual asset landscape. 
According to CoinShares, the foremost digital asset recorded $24.7 million in outflows among fund managers in the past week, while the Ethereum asset saw $13.6 million moved to spot Bitcoin ETFs. 
Other <a href="https://cryptonews.com/guides/best-altcoins.htm">altcoins</a> like <a href="https://cryptonews.com/coins/sol-solana/">Solana</a> and <a href="https://cryptonews.com/news/litecoin-price-prediction-as-bulls-protect-key-support-at-68-is-a-rally-brewing.htm">Litecoin</a> were also impacted, with $8.5 million and $1.5 million in digital assets moved across the financial landscape. On the other hand, ‘Short Bitcoin’-backed ETFs received $12.7 million in inflows. 
Meanwhile, blockchain equities experienced a positive turn, registering significant inflows of $156 million in the past week. This saw the distributed ledger technology (DLT) have a bullish inflow of $767 million in the past nine weeks. 
Furthermore, the US market remains the top performer, with the North American institutional crypto landscape witnessing inflows of $263.2 million in a week. In comparison, Brazil ranked a distant second in the best-performing category, with only $6.8 million in digital asset inflows. 
Canada was the worst-performing country in the North American region, with $165.4 million in outflows captured. Germany, Switzerland, and Sweden joined the queue, with outflows recorded at $98.8 million, $19.9 million, and $13.3 million, respectively.

Spot Bitcoin ETFs Record $4B in Inflows as Incumbent Crypto Fund Issuers Lose $2.9B

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