Bitcoin Investment Products See First Outflows After ETF Filing

Since Blackrock filed for a spot Bitcoin ETF in June, Bitcoin-related investment products have experienced their first week of outflows.

James Butterfill, head of research at CoinShares, reported on July 24 that Bitcoin investment products experienced $13 million in outflows for the week ending July 21, reversing five weeks of inflows.

Additionally, short Bitcoin products saw outflows of $5.5 million last week. Ether and XRP investment products, on the other hand, saw a combined $9.2 million inflow over the past week.

Butterfill noted that Ether investment products had the greatest performance last week with $6.6 million in inflows, while XRP funds recorded $2.6 million in inflows.

Solana and Polygon, two alternative cryptocurrencies, recorded inflows of $1,100,000 and $70,000, respectively.

The apparent change of heart followed Ripple’s partial victory against the United States Securities and Exchange Commission on July 13, in which the court ruled that XRP is not a security when traded on exchanges.

The news caused the price of XRP to surge by 76% to $0.83 before settling at $0.69 at the time of writing.

Bitcoin, however, remains the dominant digital asset investment product, with $558 million in inflows so far in 2023 and a total of $25 billion in assets under management a market share of 67.4%.

The current price of Bitcoin is $29,127, a decrease of 3.1% over the past 24 hours.

BlackRock, ARK Invest, Fidelity, Galaxy Digital, VanEck, Valkyrie Investments, NYDIG, SkyBridge, and WisdomTree are among the financial institutions that have filed applications with the SEC for Bitcoin spot Exchange Traded Funds over the past month.