Another Quiet Week For Digital Asset Fund Flows

Net inflows totaled $2.9 million last 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 another quiet week with minimal net inflows totalling US$2.9m last week.
  • After a few weeks of inflows into Bitcoin we have new seen outflows for the last two weeks, with outflows last week totalling US$10.4m.
  • Ethereum saw its 3rd consecutive week of inflows, with last week’s inflows totalling US$11.7m.
  • Volumes in Bitcoin fell to just 38% of the year-to-date average, totalling US$3.9bn per day last week.

 

Weekly Crypto Asset Flows

 

 

Flows by Provider

 

 

Flows by Assets by Institution

 

Digital asset investment products saw another quiet week with minimal net inflows totalling US$2.9m last week.

After a few weeks of inflows into Bitcoin we have new seen outflows for the last two weeks, with outflows last week totalling US$10.4m. These outflows are minimal relative to the significant outflows witnessed in May and June this year. Furthermore, we believe the timing of some investment product launches, where investors gained market access for the first time, has led to recent profit-taking rounds, this is evident in the mixed nature of inflows and outflows across different providers.

Ethereum saw its 3rd consecutive week of inflows, with last week’s inflows totalling US$11.7m. This brings year to date inflows close to the US$1bn mark.

For the rest of the altcoins it was a very quiet week, Ripple, Polkadot, Multi-asset, Cardano and Stellar all had inflows but were less than US$0.5m each.

Volumes in Bitcoin fell to just 38% of the year-to-date average, totalling US$3.9bn per day last week. We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during the summer months in recent years.

 

Weekly Crypto Asset

 

 

Weekly Crypto Asset Flows by Asset

 

 

Digital Asset ETP & Mutual fund New Asset

 

 

Crypto Asset Fund Flows as Percentage of Fund

 

 

Assets Under Management by Institution US$m

 

 

Bitcoin ETP & Mutual Fund Turnover as % of Total Bitcoin Turnover

 

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.