Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Crypto product inflow streak ends at 11 weeks, but BLOK bucks the trend

Crypto product inflow streak ends at 11 weeks, but BLOK bucks the trend

BlockworksBlockworks2023/12/20 03:52
By:Blockworks

Though BTC products lost $33 billion in assets last week, the largest blockchain equities brought in roughly $110 million in that span

Crypto investment products, in aggregate, saw net outflows last week — ending an 11-week run of capital injection into such funds. 

The net outflows — though slight at $16 million, according to CoinShares — were a departure from a two-plus month streak during which roughly $1.8 billion entered crypto products. 

Bitcoin products saw the most outflows, at $33 million, the data shows. Still, trading volume was $3.6 billion last week — above the year’s weekly average, CoinShares research head James Butterfill said in a Monday report. 

Read more: Crypto product inflow streak hits 10 weeks before BTC climbed to $42k

The outflows come as bitcoin’s price — up about 150% year to date and 14% over the past month — has dipped in recent days.

Bitcoin’s price ( BTC ) ended the week at about $41,400, Fineqia International research analyst Matteo Greco said in a Monday research note — a 5.5% decrease from the prior week’s closing value of roughly $43,800.

BTC stood at $41,580 at 10 am ET Monday. 

“This past week marked the first instance of a weekly price decrease after eight consecutive weeks of price appreciation, signaling anticipated market movements aimed at reducing market leverage,” Greco added.

Altcoins, equity funds buck trend

Ethereum product outflows were $4.4 million, CoinShares data shows . Ether’s price ( ETH ), at roughly $2,160 Monday morning, is down 2.7% from seven days ago.

Solana offerings notched about $10 million of inflows, with Cardano-, XRP- and Chainlink-related products seeing slight positive flows. 

Blockchain equity products brought in $122 million last week, flows nearly identical to the $126 million seen the week prior. 

“For many, bitcoin still isn’t accessible, and so it is the next best thing,” Butterfill told Blockworks. “For some, it’s a little lower down the scale of risk and linked to an asset class they are familiar with.”

A majority of that capital has gone into the Amplify Transformational Data Sharing ETF (BLOK), which tallied $206 million of net inflows so far in December, according to ETF.com. Roughly $110 million of those flows came last week, according to CoinShares. 

Read more: BLOK ready for possible BTC rally ahead of halving, spot ETF

BLOK, launched in January 2018, has nearly $850 million assets under management.

The fund’s top two holdings are MicroStrategy and Coinbase, stocks that are up about 288% and 340%, respectively, year to date. 

Updated Dec. 18, 2023 at 11:09 am ET: Added quote from CoinShares research head James Butterfill.

Don’t miss the next big story – join our  free daily newsletter .

Tags
  • BTC
  • ETFs
  • ETH
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!

You may also like

Bitcoin drops below $100,000 after Fed Chair Powell’s comment against BTC reserve

Bitcoin fell below the $100,000 mark on Wednesday following Federal Reserve chair Jerome Powell’s comments.Powell spoke against the idea of a U.S. national bitcoin reserve, while giving a hawkish 2025 outlook.

The Block2024/12/19 03:33