Crypto Price Gains Offset Outflows

Crypto Price Gains Offset Outflows

Digital assets investment products saw a sixth consecutive week of outflows, bringing the total six-week run of outflows to US$115 million.

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 assets investment products saw a 6th consecutive week of outflows totalling US$22m, bringing the total 6 week run of outflows to US$115m.
  • Despite the continued negative sentiment, it comes at a time of low investor participation likely due to seasonal effects as seen in other asset classes.
  • Bitcoin continues to be the main release valve for investors, with outflows totalling US$22m last week.
  • Multi-asset investment products, a stalwart during this most recent negative sentiment, saw minor outflows totalling US$0.3m, the first time since June 2020.

 

 

 

 

Digital assets investment products saw a 6th consecutive week of outflows totalling US$22m, bringing the total 6 week run of outflows to US$115m. This is now the longest run of consecutive outflows since January 2018 although it is proportionally far less, representing only 0.2% of assets under management (AuM) compared to nearly 5% in 2018.

Despite the continued negative sentiment, it comes at a time of low investor participation likely due to seasonal effects as seen in other asset classes. Volumes are now at US$3.1bn per week in investment products compared to US$7bn per week in May, representing only 4% of total trading turnover compared to 7% in May. In contrast, sentiment looks to be recovering in the overall crypto market judging by recent price rises, this has pushed total investment product AuM to US$55bn, rising 10% week-on-week.

Bitcoin continues to be the main release valve for investors, with outflows totalling US$22m last week.

Ethereum and Binance both saw minor outflows totalling US$1.1m and US$0.9m respectively. While multi-asset investment products, a stalwart during this most recent negative sentiment, saw minor outflows totalling US$0.3m, the first time since June 2020.

 

 

 

 

 

 

 

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.