$50M Flows Out Of Ether Funds

Takeaways

Ethereum bears the brunt of the negative sentiment with record outflows of US$50m

• Digital asset investment products saw a fourth consecutive week of outflows, totalling US$44m.
• This outflow, on a relative basis, remains small in comparison to the negative sentiment in early 2018, whne outflows as a percentage of AuM totalled 4.9%.
• This week, most of the negative sentiment was focused on Ethereum, where net outflows totalled US$50m, the largest on record.

Digital asset investment products saw a fourth consecutive week of outflows totalling US$44m. Since mid-May, as negative sentiment has remained prevalent, net weekly outflows now total US$313m representing 0.8% of total assets under management (AuM). This outflow, on a relative basis, remains small in comparison to the negative sentiment in early 2018 where outflows as a percentage of AuM totalled 4.9%.

This week most of the negative sentiment was focussed on Ethereum where net outflows totalled US$50m, the largest on record. These outflows represent 5% of the US$943 inflows year-to-date.

Bitcoin saw minor outflows totalling US$1.3m, its seventh consecutive week of outflows. Flows were varied across providers, with some seeing substantive outflows while others saw inflows, suggesting mixed sentiment for Bitcoin amongst investors.

Multi-digital asset investment products continued to buck the negative trend with inflows of US$6m last week, suggesting that investors continue to favour digital assets but are keen to diversify.

Despite recent weak sentiment for Bitcoin, volumes across trusted exchanges remain buoyant, with average daily volumes at US$10.8bn in 2021 so far relative to US$2.2bn in 2020.

Contact James Butterfill at [email protected]