Blockchain Equities Continue to Suffer

Blockchain Equities Continue to Suffer

The outflows are likely due to investor concerns about the crypto mining sector.

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 inflows totalling US$8.8m, while trading volumes reached a new 2-year low of US$677m for the week.
  • Bitcoin saw inflows totalling US$17m, sentiment has been steadily improving since mid-November with inflows since then now totalling US$108m.
  • Blockchain equities continue to suffer, with outflows totalling US$6.6m last week, likely due to investor concerns over the crypto mining sector, which continues to suffer from low crypto prices, rising debt interest costs and rising energy price.

 

 

Digital asset investment products saw minor inflows totalling US$8.8m, while trading volumes reached a new 2-year low of US$677m for the week. From a directional standpoint, last week highlighted positive sentiment towards the asset class as outflows were seen from most short investment products for the second week in a row.

Bitcoin saw inflows totalling US$17m, sentiment has been steadily improving since mid-November with inflows since then now totalling US$108m, representing 2.1% of total assets under management (AuM). This supportive sentiment is in-line with deteriorating sentiment for the US Dollar, highlighting their high inverse relationship. Also, short-bitcoin saw outflows for the second consecutive week totalling US$3.9m.

Ethereum saw a 4th consecutive week of minor outflows totalling US$2.4m, and since mid-November has seen outflows totalling US$22m, highlighting continued diverging sentiment relative to Bitcoin. Little activity was seen in altcoins, the only notable movements were minor inflows in Solana totalling US$0.4m and minor outflows from Polygon totalling US$0.5m.

Blockchain equities continue to suffer, with outflows totalling US$6.6m last week, likely due to investor concerns over the crypto mining sector, which continues to suffer from low crypto prices, rising debt interest costs and rising energy prices.

 

 

 

 

 

 

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.