Short-Bitcoin Digital Assets AUM Fell by $27M

Plus, ethereum posts a third consecutive week of outflows.

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 minor outflows totalling US$7.5m, although this figure is misleading as the majority of the outflows were from short investment products.
  • Sentiment towards Bitcoin improved last week with inflows totalling US$11m, while also seeing outflows from short-Bitcoin products totalling US$11m. 
  • Ethereum continues to suffer from minor negative sentiment, posting a 3rd consecutive week of outflows totalling US$4m. We believe worries over the lack of clarity on the timing of un-staking is responsible.
     

Digital asset investment products saw minor outflows totalling US$7.5m, although this figure is misleading as the majority of the outflows were from short investment products. Long-only saw minor inflows totalling US$3.3m with sentiment remaining mixed in the asset class. Investment product volumes summed to just US$753m last week, versus an average of US$2bn a week this year, suggesting low participation amongst investors.

Sentiment towards Bitcoin improved last week with inflows totalling US$11m, while also seeing outflows from short-Bitcoin products totalling US$11m. Recent positive price action and outflows in short-bitcoin saw total assets under management (AuM) fall from their all-time high end-November of US$188m to US$161m last week.

Regionally, the inflows were focussed on Canada and Germany totalling US$12m and US$3.2m respectively. The US saw the most outflows totalling US$15m, 75% of which were outflows from short investment products.

Ethereum continues to suffer from minor negative sentiment, posting a 3rd consecutive week of outflows totalling US$4m. We believe worries over the lack of clarity on the timing of un-staking is responsible.

Litecoin and Polkadot saw outflows of US$0.9m and US$0.4m, while Solana and Polygon saw inflows of US$0.2m and US$0.3m respectively.

 

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.