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.
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]
