Higher-cost crypto funds suffer as spot bitcoin ETFs hit $4 billion of inflows
Higher-cost crypto fund issuers in the U.S. have seen $2.9 billion worth of outflows — compared to $4 billion of total inflows to the new spot bitcoin ETFs since launch — according to CoinShares.Last week, digital asset investment products witnessed minor outflows of $21 million overall — driven by incumbents like the ProShares bitcoin futures ETF and Grayscale’s converted GBTC fund.
Grayscale’s GBTC has dominated the outflows, seeing over $2.8 billion exit the fund amid fees of 1.5% and likely profit-taking after converting to an ETF following years of trading at a discount to net asset value. (Discount to NAV means how much lower the market price of each share is than the value of the bitcoin it represents.)
Fees for Grayscale’s converted fund and incumbents, like ProShares’ bitcoin futures ETF (BITO) at 0.95%, are significantly higher than those offered by the new spot bitcoin ETF products — many of which carry reduced or zero fees initially and permanent fees ranging between 0.2% and 0.5%.
However, the newly-issued spot bitcoin ETFs have outstripped those outflows, attracting total inflows of $4 billion, or $1.2 billion net of Grayscale’s converted fund since launch.
Minor outflows last week as trading volumes spike
Digital asset investment products witnessed minor outflows of $21 million last week overall, led by $25 million worth of net outflows from bitcoin-based funds. “Investors saw recent price weakness as an opportunity to add to short-bitcoin investment products, seeing $13 million inflows,” CoinShares’ Head of Research James Butterfill added. Bitcoin BTC -2.26% has fallen around 5% over the past week to $40,900, according to The Block's price page .

Weekly crypto asset flows. Image: CoinShares .
Altcoin investment products also suffered, with ether and Solana funds registering outflows of $14 million and $8.5 million, respectively. However, blockchain equities performed better, with $156 million worth of inflows adding to a nine-week run totaling $767 million.
Regionally, last week’s flows suggested migration to the U.S., Butterfill said, with $263 million worth of inflows overall, compared to $297 million in combined outflows from Canada and Europe.
Meanwhile, trading volume spiked seven times the 2023 weekly average last week. Trading volume for bitcoin investment products totaled $11.8 billion — representing 63% of all bitcoin volume on trusted exchanges and highlighting the dominance of exchange-traded product activity currently, according to Butterfill.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hong Kong Needs a Liquidity Revolution
In the past two decades, Hong Kong was once the jewel of Asia's capital markets. But today, the Hong Kong stock market faces an undeniable reality: insufficient liquidity. Trading volumes have declined, valuations have remained depressed for a long time, and the financing capacity of high-quality companies is severely constrained. The issue is not a lack of quality companies in Hong Kong, but a lack of new liquidity absorption models. In the new global capital landscape, liquidity determines market pricing power and influence. Wall Street holds this influence, using ETFs, derivatives, and structured products to continuously cycle funds and assets, creating a vast liquidity network. In contrast, Hong Kong's capital market remains stuck in a traditional model of placements, IPOs, and secondary market trading, and is in urgent need of a new "liquidity revolution."

SEC unveils cross-border task force to tackle fraud
Share link:In this post: The US SEC has announced the formation of a new cross-border task force to tackle international fraud. The group is expected to help the SEC in its fight against international bad actors targeting US investors. The cross-border task force will also be charged with overseeing violations related to securities laws.
Warner Bros sues AI-image generator Midjourney over alleged character images theft
Share link:In this post: Warner Bros has initiated legal actions against AI startup Midjourney, claiming copyright infringement. The company claimed Midjourney knowingly engaged in wrongful conduct by generating its high-quality images for its subscribers. Warner Bros claims that the lawsuit was filed to protect its partners, content, and investments.

InfoFi Faces a Slump: Rule Upgrades, Shrinking Yields, and Platform Transformation Dilemma
Creators and projects are leaving the InfoFi platform.

Trending news
MoreCrypto prices
More








