Crypto Fund Outflows Set Record

Crypto Fund Outflows Set Record

It was the second straight week of outflows for digital asset funds, a record streak.

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 outflows continue; evidence suggests a switch to Proof of Stake coins.

  • Digital asset investment products saw net outflows for the second consecutive week totalling US$97m, another new record for outflows. The outflow remains low, representing only 0.2% of total assets under management (AuM).
  • Adding to the outflow was Ethereum which saw minor outflows of US$12.6m following a long run of record-breaking inflows totalling US$924m year to date (8% of AuM).
  • All other altcoins (typically coins other than Bitcoin) saw continued positive sentiment with inflows across the board totalling US$27m. Cardano saw the largest inflows ofUS$10m, which may represent investors actively choosing proof of stake coins based on environmental considerations.

 

Weekly Critpto Asset Flows

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Flows by Provider

 

 

Flows by Asset

 

Digital asset investment products saw net outflows for the second consecutive week totalling US$97m, another new record for outflows. The outflow remains low, representing only 0.2% of total assets under management (AuM). Particularly when compared to the net inflows year to date of US$5.5bn, representing 11.8% of AuM. Regardless, it represents a net change in sentiment following increasing regulatory scrutiny and concerns over Bitcoin’s environmental credentials.

Last week saw lower outflows for Bitcoin, with outflows of US$111m versus US$115m the previous week (amended following new historical updates).

Adding to the outflow was Ethereum which saw minor outflows of US$12.6m following a long run of record-breaking inflows totalling US$924m year to date (8% of AuM).

All other altcoins (typically coins other than Bitcoin) saw continued positive sentiment with inflows across the board totalling US$27m.

Bitcoin volumes on trusted exchanges reached a record US$155bn last week.

 

Fig3 CoinShares

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Fig5 CoinShares

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Fig6 CoinShares

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Fig7 CoinShares

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Fig8 CoinShares

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Fig9 CoinShares

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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.