Weekly outflow of funds from investment crypto derivatives amounted to $251 million

The outflow persists for four weeks

07.05.2024 - 14:20

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3 min

What’s new? Analysts at the investment company CoinShares have recorded an outflow of funds from cryptocurrency derivatives for the fourth week in a row. From April 29 to May 3, it amounted to $251 million. In the previous three weeks, it amounted to $435, $206, and $126 million. The company also noted that last week was the first time there was a noticeable outflow from spot bitcoin exchange-traded funds (ETFs) in the United States

CoinShares report

What else is known? Outflows from US BTC ETFs, which began trading on January 11, totaled $156 million last week. More than a dozen similar products from leading investment companies, including BlackRock, Fidelity, Grayscale, and others, are available on local exchanges.

CoinShares calculates that the average purchase price for these funds was $62 000 per coin, and a recent 10% drop below that level may have resulted in automatic share sale orders being placed.

Regionally, the bulk of the outflows came from the United States ($504 million). Investors in Switzerland, Canada, and Germany also withdrew funds from crypto products, where the outflow amounted to $9,8, $9,6, and $7,3 million, respectively.

The launch of spot crypto funds based on bitcoin and Ethereum on the Hong Kong exchange was a striking event last week. Analysts predicted that the inflow of funds into them will be small due to the specifics of the local market, in addition, new products are not available to investors from mainland China. Nevertheless, in the first week, six crypto funds received $307 million.

The bulk of the outflow traditionally came from bitcoin-based investment products, $284 million. At the same time, the largest altcoins demonstrate positive results. Thus, Ethereum derivatives attracted $30 million, ending the 7 weeks of outflow of funds.

Bernstein reiterates its prediction for BTC to rise to $150n000 amid slowing inflows into ETFs

The brokerage’s analysts believe inflows will recover once funds become more closely integrated with advisory firms

The inflow was observed across a wide range of altcoins, the most notable were Avalanche, Cardano, and Polkadot: +$0,5, $0,4 and $0,3 million, respectively.

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