Last week, Bitcoin-focused investment vehicles experienced a notable influx of more than $700 million, as new spot Bitcoin (BTC) exchange-traded funds (ETFs) attracted significant investments, offsetting the decreasing outflows from Grayscale's flagship fund, GBTC, according to CoinShares.
The BlackRock-managed IBTC and Fidelity's FBTC, leading the pack among the newly issued spot Bitcoin ETFs, recorded weekly inflows of $884 million and $674 million, respectively, marking a slight increase from the previous week in dollar terms.
In contrast, GBTC saw a withdrawal of approximately $927 million, a substantial decrease from the $2.2 billion outflow witnessed the week prior.
James Butterfill, head of research at CoinShares, highlighted in the report a "significant reduction in momentum of these outflows in recent weeks," pointing towards a stabilizing trend in the market.
The introduction of spot BTC ETFs in the U.S. on January 11 initiated a period of heightened withdrawals from existing bitcoin funds like GBTC, primarily driven by profit-taking and the FTX's sale of GBTC holdings. However, these outflows have shown a slowdown, while the new ETFs continue to see consistent inflows.
By the end of last week, the cumulative funds managed by the new bitcoin ETFs reached $7.7 billion, effectively compensating for the $6 billion outflows from older funds. This shift indicates a growing investor preference for the newly available investment options over traditional ones.
In the realm of altcoins, Solana (SOL) led the way with $13 million in inflows, signaling a strong investor interest despite the broader market's challenges.
Conversely, investment vehicles holding Ethereum's ether (ETH) and Avalanche's native token (AVAX) faced $6.4 million and $1.3 million in outflows, respectively, underscoring the fluctuating investor sentiment across different cryptocurrency assets.
