$28M Flows Out Of Digital Asset Funds

Digital asset investment products saw outflows for the third consecutive week.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: James Butterfill
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Edited by: James Butterfill

Takeaways

  • Digital asset investment products saw outflows for the third consecutive week with outflows totalling US$28m.
  • Bitcoin saw the majority of the outflows which totalled US$24m, the largest outflows since mid-June.
  • Multi-asset investment products continue to buck the trend with another week of inflows totalling US$3.1m.
  • Investment product trading turnover remains low at US$1.7bn for last week, this represents just 22% of the high in volumes seen in May.

 

 

 

Digital asset investment products saw outflows for the third consecutive week with outflows totalling US$28m. Last week’s outflows suggest negative sentiment still pervades the asset class despite more recent constructive comments from key industry players.

Bitcoin saw the majority of the outflows which totalled US$24m, the largest outflows since mid-June. Net flows year to date remain positive with inflows of US$4.1bn, but they are off their peak of US$4.7bn seen in early May.

Ethereum also saw outflows totalling US$7.3m although flows were very mixed amongst providers with no discernible regional trend.

Multi-asset investment products continue to buck the trend with another week of inflows totalling US$3.1m. Multi-asset is the only set of investment products where there have been inflows every week this year representing 18% of assets under management.

Investment product trading turnover remains low at US$1.7bn for last week, this represents just 22% of the high in volumes seen in May. This decline is mirrored in overall Bitcoin volumes which were 32% over the same period in what we believe is due to seasonal effects.

 

 

 

 

 

 

 

Contact James Butterfill at [email protected]

James Butterfill has over 19 years of experience in fund management, investment banking, economics and asset allocation, gained most recently as an investment strategist at CoinShares. Previously, he was head of research at ETF Securities, with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co., HSBC & ING Barings. James is a regular media commentator, and frequently appears on Bloomberg TV, CNBC, BBC and other broadcast outlets. Investment Week awarded him best ETF Eesearch and best FX Research in 2016 and 2017, respectively. James is currently an investment strategist at CoinShares, writing research white papers on investment themes, identifying investment opportunities and helping investors understand the digital asset world.