Bitcoin Posted Record Weekly Outflow while Ethereum Showed Strong Inflows: CoinShares Report
Discount on GBTC meanwhile tanked to 19% before recovering to -5.75% as it continues to face increased competition from several Bitcoin ETFs trading in Canada.
Bitcoin had a record weekly outflow of $21 million for the week of April 23, per data from digital currency manager CoinShares.
This week the leading digital asset had the largest weekly outflow on record, crypto-asset prices tumbled, tuning the market sentiments cautious only for Bitcoin to reverse the two-week-long downtrend.
The crypto market is back to uptrending, with BTC price around $55,000.For the same week, total weekly inflows for the crypto sector were just $1.3 million, the lowest weekly numbers since October 2020.
Still, the outflows last week were 0.05% of the crypto sector’s assets under management, while weekly inflows averaged 0.6%. Total assets under management (AUM) were $54.3 billion as of last week, down from $64.2 billion in mid-April. Matt Weller, Global Head of Market Research at Forex.com and City Index said,
“We saw investors shifting funds away from bitcoin amid some idiosyncratic developments last week, prominently including the temporary power outage in mining mecca Xinjiang.”
The incident led to a drop in hash rate, which then resulted in an increase in block time, unconfirmed transaction, and fees which, as we reported, has already been recovered, with the hash rate now aiming for a new ATH.
Interestingly, unlike Bitcoin, Ethereum showed strong inflows of $34 million. This year, so far, inflows were $792 million, or 8% of total AUM. ETH -1.33% Ethereum / USD ETHUSD $ 3,098.95
-$41.22-1.33% Volume 16.38 b Change -$41.22 Open $3,098.95 Circulating 117.65 m Market Cap 364.6 b 13 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees 17 h Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 18 h Google Searches for Bitcoin Hit Dec 2020 Level, Interest in NFTs Surpass DeFi Significantly and Matched Ethereum Briefly Forex.com's Weller said,
“Cryptoasset investors continued to accumulate ethereum as the highly-anticipated July launch of EIP-1559, which will cut the new supply of ETH dramatically, approaches.”
While CoinShares’s AUM was down slightly from $5.7 billion as of the mid-April to $5.2 billion, the world’s largest digital assets manager, Grayscale, is overseeing $41 billion in assets, down from $49.5 billion the previous week.
Grayscale Bitcoin Trust (GBTC) discount also continues to hit a record low, tanking to a fresh low of 19% before recovering to -5.75% as the Trust doesn’t allow any redemptions, unlike the exchange-traded funds (ETF).
Owners of the trust need buyers in the secondary market, but GBTC faces increased competition from several Bitcoin ETFs trading in Canada. Stephane Ouellette, chief executive, and co-founder of FRNT Financial said,
“GBTC has never been in a situation where one, there have been readily available alternatives that dominate, and two, this is the most significant sell-off in absolute terms since the massive adoption boost we’ve seen since the fall.”