Crypto product inflow streak ends at 11 weeks, but BLOK bucks the trend

Though BTC products lost $33 billion in assets last week, the largest blockchain equities brought in roughly $110 million in that span

article-image

Igor Faun/Shutterstock modified by Blockworks

share

Crypto investment products, in aggregate, saw net outflows last week — ending an 11-week run of capital injection into such funds. 

The net outflows — though slight at $16 million, according to CoinShares — were a departure from a two-plus month streak during which roughly $1.8 billion entered crypto products. 

Bitcoin products saw the most outflows, at $33 million, the data shows. Still, trading volume was $3.6 billion last week — above the year’s weekly average, CoinShares research head James Butterfill said in a Monday report. 

Read more: Crypto product inflow streak hits 10 weeks before BTC climbed to $42k

The outflows come as bitcoin’s price — up about 150% year to date and 14% over the past month — has dipped in recent days.

Bitcoin’s price (BTC) ended the week at about $41,400, Fineqia International research analyst Matteo Greco said in a Monday research note — a 5.5% decrease from the prior week’s closing value of roughly $43,800.

BTC stood at $41,580 at 10 am ET Monday. 

“This past week marked the first instance of a weekly price decrease after eight consecutive weeks of price appreciation, signaling anticipated market movements aimed at reducing market leverage,” Greco added.

Altcoins, equity funds buck trend

Ethereum product outflows were $4.4 million, CoinShares data shows. Ether’s price (ETH), at roughly $2,160 Monday morning, is down 2.7% from seven days ago.

Solana offerings notched about $10 million of inflows, with Cardano-, XRP- and Chainlink-related products seeing slight positive flows. 

Blockchain equity products brought in $122 million last week, flows nearly identical to the $126 million seen the week prior. 

“For many, bitcoin still isn’t accessible, and so it is the next best thing,” Butterfill told Blockworks. “For some, it’s a little lower down the scale of risk and linked to an asset class they are familiar with.”

A majority of that capital has gone into the Amplify Transformational Data Sharing ETF (BLOK), which tallied $206 million of net inflows so far in December, according to ETF.com. Roughly $110 million of those flows came last week, according to CoinShares. 

Read more: BLOK ready for possible BTC rally ahead of halving, spot ETF

BLOK, launched in January 2018, has nearly $850 million assets under management.

The fund’s top two holdings are MicroStrategy and Coinbase, stocks that are up about 288% and 340%, respectively, year to date. 

Updated Dec. 18, 2023 at 11:09 am ET: Added quote from CoinShares research head James Butterfill.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

AERODROME TEMPLATE.png

Research

Aerodrome is a "MetaDEX" that combines elements of various DEX primitives such as Uniswap V2 and V3, Curve, Convex, and Votium. Since its launch on Base, it has become the largest protocol by TVL with more than $495M in value locked, doubling Uniswap's Base deployment.

article-image

And a look into the newest name on the Trump ticket: Sen. JD Vance

article-image

Plus, Imran Khan’s intriguing experiment on the speeds of crypto onramps

article-image

The SEC has signaled a timeline to issuers that could lead to a July 23 launch for the ETH funds, people close to the process told Blockworks

article-image

PayPal has unequivocally made a name for itself as a crypto adopter among fintech giants

article-image

Also, a look into how the highly-debated SAB 121 could end up shaking out for crypto custodians

article-image

Vance, an Ohio Republican, is largely seen as crypto-friendly