Cash is flowing out of digital asset investment products, including spot Bitcoin ETFs, as Bitcoin prices cling to record highs amid global economic headwinds.
According to the report, money has been outflowing from these investments for three consecutive weeks, with $435 million lost in the past seven days alone. data From CoinShares. Month-to-date outflows have reached $102 million across coins including: Bitcoin, Ethereumand Solana.
“Inflows from new ETF issuers are slowing in the U.S.,” asserted James Butterfill, head of research at CoinShares. Decryption. “There is still an influx, but it is less than before.”
Outflows from Grayscale's Bitcoin Trust have subsided recently, but Butterfill said the near-constant outflow of cash from the company's $19 billion fund has slowed down compared to other funds that debuted on Wall Street in January. He said that this is overshadowing the increase in influx from China.
For example, the Spot Bitcoin ETF announced last week that it recorded net outflows of $328 million. data From Farside Investors. At the same time, Grayscale's Bitcoin Trust alone saw outflows of $454 million, far exceeding the group's overall allocation during that period.
After hitting a record high in March, bitcoin price It has fallen 12% over the past month to $63,000, according to CoinGecko data. The decline comes as traders focus on the Federal Reserve and how strong economic data in the U.S. could affect monetary policy in the coming months. signs of stubborn inflation.
“For a while this year, it was all about ETFs,” Butterfill said. “Recently, I believe that interest rate trends have definitely had a greater impact on prices.''
The Fed is expected to keep interest rates unchanged at its policy meeting this week, but market participants will be watching for a dovish or hawkish tone. Risk assets, which typically benefit from lower borrowing costs, have fallen as traders' expectations of when interest rate cuts will occur have declined. pushed out further.
BlackRock's Spot Bitcoin ETF also recorded its 71st consecutive day of inflows. I got off track last week Because the price of Bitcoin has fallen. After seeing $17.5 billion worth of Bitcoin inflows since its approval in January, BlackRock's ETF had three consecutive days of no inflows or outflows.
Spot Bitcoin ETF momentum has declined noticeably, but given that the digital asset investment product had its best year on record with $13 billion in inflows to date, that's not necessarily a cause for concern. There's no need,” Butterfill said.
That said, U.S. market participants have not completely consumed Spot Bitcoin ETFs, and some analysts expect inflows to pick up again as the year progresses.
Bernstein analysts Gautam Chughani and Mahika Sapra said in a note to clients on Monday that the slowdown in inflows is due to “ETFs becoming more integrated with private bank platforms, wealth advisors and even brokerage platforms. “There will be a brief hiatus until then,” he wrote.
Edited by Ryan Ozawa.
