Summary
Global crypto funds experienced significant outflows of approximately $500 million last week, marking the highest amount since the approval of spot Bitcoin ETFs by the US SEC. Grayscale Investments’ GBTC, which converted to a spot Bitcoin ETF after the SEC’s decision, led the outflows with $2.2 billion. Since its conversion, GBTC has seen total outflows of over $5 billion as of January 26, as per the CoinShares report.
Key Points
1) Global crypto funds experienced outflows of around $500 million last week, marking the highest outflow since the approval of spot Bitcoin ETFs by the US Securities and Exchange Commission on January 10.
2) Grayscale Investments’s spot Bitcoin exchange-traded fund (GBTC), which converted from a trust after the SEC’s decision, accounted for the majority of the outflows with $2.2 billion last week. The report states that the total outflow since conversion now stands at just over $5 billion as of January 26.
3) The CoinShares report highlights the significant decrease in investor confidence and interest in crypto funds, as evidenced by the substantial outflows in recent weeks.