Million

Grayscale Bitcoin Trust

James

Digital asset management funds are still on a record rise, with Bitcoin inflows especially soaring. So far, the crypto-backed investment products have recorded $7.7 billion in total inflows in the US, according to a February 6 CoinShares report on crypto-backed investment funds. 
CoinShares Head of Research <a href="https://blog.coinshares.com/volume-168-digital-asset-fund-flows-weekly-report-16427d7d3235">James Butterfill shared his insights</a>, noting that the world’s largest cryptocurrency, Bitcoin, <a href="https://cryptonews.com/news/bitcoin-dominates-as-crypto-products-record-largest-consecutive-inflows-since-2021.htm">saw the most fund inflows</a> in crypto-backed investment products. 
<h2 id="bitcoin-inflows-hit-703-million-in-past-week">Bitcoin Inflows Hit $703 Million in Past Week</h2> 
 According to Butterfill, Bitcoin had a combined total of $703 million last week. This accounted for 99% of all total inflows recorded in the said period. Also, short-Bitcoin fund movements recorded a total outflow worth $5.3 million, a direct indicator of the reversal of the digital asset’s negative price momentum. 
According to the report, total inflows came up to $7.7 billion locked in since the January 11 <a href="https://cryptonews.com/news/bitcoin-etf-approval-frenzy-begins-as-sec-finally-approves-first-spot-bitcoin-funds-bitcoin-remains-unresponsive.htm">launch of the spot Bitcoin ETFs</a>. 
The total outflows have also been sizable at $6 billion, leaving about $1.6 billion in total year-to-date inflows locked. The total global amount of assets under management (AUM) was put at an incredible $53 billion. 
More insights detailed that $708 million in inflows was recorded while the trading volumes for <a href="https://cryptonews.com/news/crypto-etp-comes-ahead-of-etf-why-it-s-important-2948.htm">exchange-traded products</a> (ETPs) fell to $8.2 billion. This figure is historic, given that the previous week’s total for ETP trades stood at $10.6 billion. 
It’s still above the $1.5 billion week average recorded for ETP total trades in 2023, however. 
 Digital asset investment products saw large inflows totalling US$708m last week! 
 This brings year-to-date inflows to US$1.6bn and total global assets under management to US$53bn. 
 Trading volumes in ETPs fell to US$8.2bn (compared to US$10.6bn the prior week), but… <a href="https://t.co/phsy5zjnTf">pic.twitter.com/phsy5zjnTf</a> 
— CoinShares (@CoinSharesCo) <a href="https://twitter.com/CoinSharesCo/status/1754516349693407284?ref_src=twsrc%5Etfw">February 5, 2024</a> 
The sizable inflows are further helped by the <a href="https://cryptonews.com/news/blackrocks-bitcoin-etf-surpasses-grayscale-in-daily-trading-volume.htm">reduced outflows on Grayscale Bitcoin Trust ETF </a>(GBTC). According to Butterfill, GBTC’s outflows stood at $926.7 million in the past week. 
Other outflows in the US&nbsp; show that ProShares ETFs saw $108.9 million in digital funds moved from its platform. 
European outflows were also captured, with Sweden’s XBT Provider AB recording $8.2 million in outflows and Germany’s ETC Issuance GmbH losing $8.6 million. Purpose Investments Inc ETF rounded up the list with $36.5 million in recorded outflows. 
<h2 id="solana-continues-to-turn-heads">Solana Continues to Turn Heads</h2> 
 Bitcoin may be the most coveted digital asset, but <a href="https://cryptonews.com/guides/best-altcoins.htm">some altcoins</a>&nbsp;have also impressed investors. 
Solana attracted $13 million in inflows in the past week. <a href="https://cryptonews.com/news/ethereum-news/">Ethereum</a> and Avalanche investment products followed closely, recording $6.4 million and $1.3 million in inflows, respectively. 
On the other end of the spectrum, blockchain-backed equities were able to attract $11 million in inflows, although they lost $147 million in outflows. 
The likely reason for such a high volume of outflows in Europe and elsewhere lies in the affordable rates most spot Bitcoin ETFs offer interested investors, especially in the US. 
While traditional crypto fund managers like <a href="https://www.bloomberg.com/news/articles/2024-01-17/grayscale-ceo-says-track-record-justifies-bitcoin-etf-sector-high-fees-gbtc#:~:text=Grayscale%20Investments%20Chief%20Executive%20Officer,track%20record%E2%80%9D%20of%20the%20company.">Grayscale charge as much as 1.5% in management fees</a>, new-generation services charge between 0.2% and 0.5%. 
These fees have been the defining factor in digital fund movements to the US in the last four weeks. 
CoinShares noted in its report that the US-based spot Bitcoin ETFs attracted $721 million in inflows last week, with newly issued ETFs recording $1.7 billion in inflows.

Inflows of US Digital Asset ETFs Hits Total of $7.7B in Four Weeks

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