Bitcoin’s Influence on Digital Asset Market: Grayscale Selloff Slows

The global digital assets market experienced significant growth during the week beginning on January 29, reaching a total of $53 billion in assets under management. This increase was largely driven by investments in Bitcoin, according to CoinShares, an alternative asset manager. The digital asset market received a total inflow of $708 million throughout the week, with $703 million of that amount being invested in the United States. This is in contrast to the previous week, which saw a total outflow of $499.7 million.

Bitcoin dominated the market during the week of January 29, accounting for 99% of all market inflows. A total of $703 million was invested in Bitcoin, while only $5.3 million was pulled out. In terms of exchange-traded products, the total inflow was recorded at $8.2 billion, a decrease from the previous week’s $10.6 billion. The United States was the most active market, receiving $721 million in investments. This compares favorably to the previous week’s outflow of $408.8 million from the country.

The new market for BTC spot exchange-traded funds (ETFs) in the United States attracted a total of $1.7 billion in investments. Although this is a slight decrease from the weekly average of $1.9 billion since the launch on January 11, it still demonstrates the growing interest in BTC ETFs. It is worth noting that there have also been significant outflows from existing issuers, totaling $6 billion. Despite this, the data shows a notable reduction in the momentum of these outflows.

There were notable outflows from the Grayscale Bitcoin Trust (GBTC) ETF, which sold off $926.7 million of BTC, and ProShares, which sold $108.9 million of BTC. These outflows were offset by the inflows from iShares (BlackRock) and Fidelity ETFs, which added a combined total of $1.6 billion. The BTC price faced some challenges last week, as indications suggested that the U.S. Federal Reserve may maintain high interest rates in the foreseeable future.

In terms of blockchain platforms, Solana emerged as the top competitor, attracting $13 million in investments. This was followed by Ethereum with $6.4 million, and Avalanche with $1.3 million. Ethereum saw an outflow of $6.4 million. Canada experienced the largest outflow nationally, with $31.3 million being traded away. Sweden came in second with $8.2 million in outflows. While many countries saw outflows in the prior week as well, Canada experienced a significant increase in outflows. Germany, Switzerland, and the United States saw a reversal in outflows. Switzerland, in particular, saw a dramatic turnaround, with $59.8 million leaving the country two weeks ago, and $20.9 million returning last week.