European bitcoin exchange-traded product outflows have increased following the recent introduction of spot BTC ETFs in the U.S., an analyst said.

CoinShares Research Associate Luke Nolan indicated that this market shift highlights a trend wherein institutional traders in the U.S. are likely redirecting their investment strategies toward recently approved spot bitcoin ETFs.

"There has been a significant outflow from European bitcoin ETPs. Prior to the approval of multiple spot bitcoin ETFs, many U.S. institutions utilized European ETPs for nearly risk-free basis trades. However, with the recent approval of the new U.S. products, these institutions may find it more cost-effective or convenient to execute the same basis trades domestically," Nolan told The Block.

According to Nolan, these …