According to a recent report from CoinShares, a digital asset fund manager, investors are withdrawing funds from prominent cryptocurrency funds in the aftermath of the launch of spot Bitcoin exchange-traded funds (ETFs) earlier this month. The data reveals a withdrawal of $21 million from crypto fund issuers in the past week.

CoinShares suggests that investors seeking exposure to digital assets are reallocating their investments to the new Bitcoin ETFs. The report highlights a notable trend where established, higher-cost issuers in the U.S. experienced $2.9 billion in outflows, while newly launched ETFs attracted a total of $4.13 billion in inflows since their introduction. Conversely, short Bitcoin products, which anticipate a decline in crypto prices, saw inflows of approximately $13 million. Additionally, altcoin funds linked to Ethereum and Solana faced outflows of $14 million and $8.5 million, respectively. The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) on January 10 marked a significant milestone for the cryptocurrency industry, with BlackRock’s iShares Bitcoin Trust emerging as the top-performing ETF among the 10 currently in trading, boasting $1.3 billion in assets under management. However, Grayscale, managing billions in crypto assets, experienced substantial outflows, particularly following the conversion of its Bitcoin Trust (GBTC) to a Bitcoin ETF. Investors have rapidly withdrawn over $2.2 billion from GBTC since the conversion.