Outflow from Crypto Products Rises Driven by GBTC Sales: CoinShares

In a report from CoinShares, it was revealed that withdrawals from cryptocurrency investment products during the week of January 20 to January 26 totaled $499.7 million, showing a steep increase from the previous week’s $20.8 million.

The data also showed that Grayscale Investments experienced a significant outflow of funds from their GBTC and other products, amounting to $2.23 billion, after the SEC’s approval of exchange-traded funds based on digital gold, which amounted to $5.1 billion.

This figure surpassed the net inflow of $1.8 billion into spot Bitcoin ETFs from their competitors. In the period from January 11, products excluding GBTC raised a total of $5.94 billion.

Experts believe that the recent drop in cryptocurrency prices is mainly due to the fact that most purchases of digital gold by issuers were made before January 11.

During the past week, the outflow from Bitcoin-related products amounted to $478.9 million, with $24.7 million in the previous reporting period.

However, investors still showed interest in shorting the first cryptocurrency, with investments of $10.6 million in structures providing this option, compared to $12.7 million in the previous week.