Grayscale’s Outflows Decrease Amid Rising Investor Interest in Altcoins Such as Solana and Polkadot
The latest weekly update from CoinShares shows that inflows into the Newborn Nine ETFs have fallen by more than 50% last week, declining from $254 million to $126 million.
This downturn has resulted in the third successive week of outflows, totaling $435 million withdrawn from major cryptocurrency investment products over the week. This marks the most significant outflow since March.
Grayscale’s GBTC Sees Reduced Outflows as Trading Volume Declines
Recent data reveals that Grayscale’s GBTC experienced significant outflows, with $440 million withdrawn last week. This figure, however, marks the smallest weekly outflow in the last nine weeks, indicating a potential slowing in the rate of outflows.
Despite this, the total outflows from GBTC have surpassed $17 billion since the start of the year.
James Butterfill, CoinShares’ head of research, noted that the dip in inflows has also led to a decrease in trading volume, falling from $18 billion to $11.8 billion. Last week saw major ETF issuers like BlackRock and Fidelity experience several days with no new flows, signaling a possible waning interest among investors in this asset class.
- Outflows show potential slowing, smallest in nine weeks
- Trading volume reduced significantly
- Some ETF issuers saw days with zero new flows
Altcoins Attract Investor Interest Amid Market Shifts
Over the past week, digital asset investment products linked to altcoins like Chainlink, Cardano, Polkadot, Solana, and XRP have experienced notable inflows, totaling over $25 million according to the latest CoinShares report.
Despite a significant price rally in Bitcoin, Ethereum saw substantial withdrawals of $123.8 million, with an additional $38.4 million exiting throughout the month.
This activity has led to a negative year-to-date flow of $50 million for Ethereum. In contrast, the current bearish market sentiment has drawn investors towards bearish positions, with $1.3 million being invested in short Bitcoin products.
- Ethereum faces $162.2 million in recent outflows.
- Altcoins see a combined influx of $25 million.
- Bearish bets on Bitcoin rise amid downturn.
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