Altcoin Funds See Inflows

Ripple, Polkadot and Solana had inflows totaling $1.1 million, $0.8 million and $0.7 million, respectively.

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
  • Digital asset investment products saw outflows for the second consecutive week, totalling US$47m last week. The same trend continued with outflows predominantly coming from North American providers.
  • We believe the recent negative sentiment in North America is due to continued jitters over regulation and geopolitical issues caused by the Ukrainian conflict.
  • Most altcoins saw inflows last week. Notable were Ripple, Polkadot and Solana with inflows totalling US$1.1m, US$0.8m and US$0.7m respectively.

 

 

Digital asset investment products saw outflows for the second consecutive week, totalling US$47m last week. The same trend continued with outflows predominantly coming from North American providers, with outflows comprising 98% while flows in Europe were broadly flat. We believe the recent negative sentiment in North America is due to continued jitters over regulation and geopolitical issues caused by the Ukrainian conflict. Since the conflict began, we have seen trading volumes rise by 160% and 150% in Ukraine and Russia respectively.

Bitcoin saw the largest outflows, totalling US$33m, half the amount seen the previous week. This last two weeks of outflows now total US$101m but year-to-date flows remain positive at US$64m.

Ethereum saw outflows totalling US$17m last week, much less than the previous week which saw outflows of US$50m. Negative sentiment still pervades the asset this year, with year-to-date outflows at US$151m, representing 1.2% of assets under management (AuM).

In contrast, most other altcoins saw inflows last week. Notable were Ripple, Polkadot and Solana with inflows totalling US$1.1m, US$0.8m and US$0.7m respectively.

Blockchain equities saw inflows totalling US$17m last week, up from US$4m the previous week, having demonstrated resilient positive investor sentiment.

 

 

 

 

 

 

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.