Research Summary
The report discusses the recent outflows from digital asset investment products, with a focus on Grayscale and newly issued US ETFs. It also highlights the regional distribution of these outflows and the impact on Bitcoin and altcoins.
Key Takeaways
Global Outflows in Digital Assets
- Significant Global Outflows: Digital asset investment products experienced significant outflows globally, amounting to US$500m. The US, Switzerland, and Germany were the regions with the most outflows, totaling US$409m, US$60m, and US$32m respectively.
Grayscale’s Outflows and US ETFs’ Inflows
- Grayscale’s Subsiding Outflows: Grayscale saw outflows totaling US$2.2bn last week, but the data suggests that these outflows are beginning to decrease over time. Since January 11, 2024, Grayscale has seen outflows totaling US$5bn.
- US ETFs’ Inflows: In contrast to Grayscale, newly issued US ETFs experienced inflows totaling US$1.8bn last week. Since their launch on January 11, 2024, these ETFs have seen inflows of US$5.94bn.
Bitcoin and Altcoins’ Performance
- Bitcoin’s Outflows: Bitcoin saw the most outflows, totaling US$479m. However, short-bitcoin saw inflows totaling US$10.6m.
- Altcoins’ Outflows: Altcoins predominantly experienced outflows last week. Ethereum saw outflows of US$39m, while Polkadot and Chainlink saw outflows of US$0.7m and US$0.6m respectively.
Blockchain Equities’ Inflows
- Blockchain Equities’ Inflows: Despite the outflows in digital assets, blockchain equities saw inflows totaling US$17m last week.
Actionable Insights
- Monitor Grayscale’s Outflows: Given the significant outflows from Grayscale, it would be prudent to keep a close eye on this trend and its potential impact on the digital asset market.
- Assess the Performance of Newly Issued US ETFs: The inflows into newly issued US ETFs contrast sharply with the outflows from Grayscale. This could indicate a shift in investor preference, which warrants further investigation.
- Track Bitcoin and Altcoins’ Movements: The outflows from Bitcoin and altcoins could have implications for their price movements. Monitoring these trends could provide valuable insights into the digital asset market.
- Consider the Role of Blockchain Equities: The inflows into blockchain equities amidst the outflows from digital assets suggest that these equities could play a significant role in the digital asset ecosystem. This area could be worth exploring further.
