Recent statistics provided by CoinShares indicate a notable decline in outflows from Grayscale Bitcoin Trust (GBTC), plummeting from $2.2 billion to $927 million within a single week. Concurrently, both BlackRock and Fidelity have sustained consistent growth in their cryptocurrency-related assets during this period.
Positive Turnaround in Crypto Product Flows
Last week witnessed a notable shift in the flow of crypto products, marking a return to positive territory after recent challenges. Data from CoinShares revealed that these products accumulated inflows totaling $708 million, a significant reversal from the preceding week, which experienced outflows of approximately $500 million.
Dynamic Changes in Asset Movement
The significant outflows observed in crypto products during the week ending Jan. 26 were primarily attributed to the Grayscale Bitcoin Trust ETF (GBTC), which recorded outflows of around $2.2 billion.
However, this figure decreased notably to $927 million in the subsequent week. BlackRock and Fidelity emerged as key players during this period, with inflows of $884 million and $674 million, respectively, surpassing the outflows from GBTC.
Growth and Performance of Specific Funds
The iShares Bitcoin Trust (IBTC) has exhibited remarkable growth since its inception, amassing over $3 billion in assets. Its daily trading volumes even surpassed those of GBTC for the first time on Feb. 1.
Similarly, the Fidelity Wise Origin Bitcoin Fund (FBTC) has accumulated assets totaling approximately $2.6 billion. While GBTC maintains a significant lead in asset management with around $20.5 billion, recent trends indicate a narrowing of this gap.
Sustained Momentum in Bitcoin ETF Flows
BitMEX Research's data on Bitcoin ETF flows reveals a consistent trend of net inflows for the 10 US spot bitcoin ETFs, spanning six consecutive days. This trend peaked at $247 million on Jan. 30 following four days of net outflows.
Bloomberg Intelligence analyst Eric Balchunas suggests that the sustained momentum and inflows witnessed in the third week post-launch indicate the enduring appeal and viability of these ETFs.
Observations on January's Flows
David Lawant, head of research at FalconX, highlights the robust inflow numbers observed towards the end of January. The data indicates average daily net inflows of $194 million into US spot bitcoin ETFs over the final three days of the month, which then decreased to $59 million during the first two days of February.
Lawant remains optimistic about the medium to long-term prospects, anticipating that inflows will outweigh short-term outflows.
Future Outlook and Implications
The coming days will be pivotal in determining the sustainability of these inflows, with attention drawn to whether they are linked to end-of-month portfolio adjustments or indicative of a more enduring trend.
Lawant underscores confidence in the resilience of inflows over the medium to long term, suggesting a positive trajectory for the crypto product market despite short-term fluctuations.
How To Buy Crypto With Bittime
You can buy and sell crypto assets in an easy and safe way via Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.
To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.
Monitor price chart movements of Bitcoin (BTC), Ethereum (ETH), Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.
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