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European Digital Asset Manager CoinShares Observations on Bitcoin ETF Trends
European digital asset manager CoinShares has noted a slowdown in the hype surrounding Bitcoin ETFs despite Bitcoin’s recent price surge to over $71,000 per coin. The firm’s analysis reveals interesting insights into the current state of Bitcoin funds and investor behavior.
CoinShares’ Bitcoin Flow Tracker Analysis
In a recent blog post, CoinShares’ Head of Research, James Butterfill, highlighted that while the biggest Bitcoin funds are still receiving significant inflows, the volume has decreased compared to earlier this year. Specifically, volumes dropped to $17.4 billion last week from $43 billion in the first week of March.
Bitcoin Investment Trends
Flows into digital asset products totaled $646 million for the week, with a majority of the investments aimed at gaining exposure to Bitcoin over other cryptocurrencies. Year to date, inflows have reached a record high of $13.8 billion, surpassing the $10.6 billion seen in 2021. Notably, most of these inflows have been absorbed by Bitcoin spot ETFs approved in January, accumulating $12.6 billion in net flows since their launch.
Performance of Bitcoin ETFs
The total volume traded by these ETFs in March exceeded $111 billion, marking a significant increase from previous months. However, the Grayscale Bitcoin Trust (GBTC) stands out as the only US Bitcoin spot ETF experiencing continuous outflows since its inception. This trend is attributed to early investors looking to capitalize on Bitcoin’s price surge, which has seen a 62% increase year to date.
Global Bitcoin ETF Trends
Internationally, Swiss and Canadian crypto funds have also experienced losses, with $27 million and $7.3 million withdrawn respectively. Canada’s Purpose Bitcoin ETF, the world’s first Bitcoin spot ETF, has seen a decrease in Bitcoin holdings since the launch of equivalent products by BlackRock and Fidelity in January.
Bitcoin and Ethereum Investment Flows
While Bitcoin funds continue to attract investments, short Bitcoin investment products faced outflows for the third consecutive week. Additionally, Ethereum saw its fourth consecutive week of outflows, losing $22.5 million from related funds. Concerns arise regarding the approval of an Ethereum spot ETF, with experts growing less optimistic about the upcoming application deadlines.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
