Last week saw the return of inflows into globally listed digital asset investment products as total assets under management (AUM) increased $708 million, led by the newly listed spot Bitcoin (BTC) ETFs, which helped erase the outflows recorded the week prior.
The year-to-date inflows now stand at $1.6 billion while total global assets under management are $53 billion.
“Trading volumes in ETPs fell to US$8.2bn compared to the prior week's total of US$10.6bn, although [they] remain well above the US$1.5bn week average in 2023,” said James Butterfill, head of research at CoinShares. “These volumes comprise 29% of Bitcoin’s total trading on trusted exchanges.”
U.S.-listed products remain the focus of attention as they recorded $721 million worth of inflows during the week ending February 2, “with newly issued ETFs seeing US$1.7bn inflows,” Butterfill said.
“These new ETFs have now averaged US$1.9bn inflows over the last 4 weeks, bringing total inflows since launch (11th January) to US$7.7bn,” he added. “This has been offset by outflows from incumbent issuers, which total US$6bn, but data highlights a significant reduction in [the] momentum of these outflows in recent weeks.”
Products listed in Canada recorded outflows of $31.3 million, while Sweden saw $8.2 million in outflows.
The vast majority of flows centered around Bitcoin and the newly listed spot BTC ETFs, with $702.7 million flowing into these products, comprising 99% of all flows. “Short-bitcoin saw minor outflows totaling US$5.3m, coinciding with a reversal of negative price momentum,” Butterfill said.
Solana’s AUM increased by $13 million, while Ethereum and Avalanche recorded outflows of $6.4 million and $1.3 million, respectively.
“Blockchain equities saw US$147m outflows from one issuer last week, although this masked US$11m inflows from other issuers,” Butterfill said.
According to Nate Geraci, president of investment advisory firm ETF Store, the Bitcoin ETFs of BlackRock and Fidelity ranked among the top 10 ETFs with the largest January flows, totaling roughly $4.8 billion.
Two spot bitcoin ETFs among top 10 of *all* ETF inflows in January...
Never thought I'd see the day.
via @MorningstarInc pic.twitter.com/o7L5CEu5Ef— Nate Geraci (@NateGeraci) February 3, 2024
According to a report from Morningstar research analyst Lan Anh Tran, BlackRock’s iShares Bitcoin Trust (IBIT) had an estimated $2.6 billion in net flows, putting it in eighth place, while the Fidelity Wise Origin Bitcoin ETF (FBTC) secured 10th place with $2.2 billion in net flows.
The report estimates that the Grayscale Bitcoin Trust (GBTC) recorded outflows of $5.7 billion in January, the second-highest level of outflows among the over 3,100 ETFs listed in the U.S.
