Digital Asset Funds Snap Inflows Streak

Digital asset investment products saw outflows totaling $110 million last week.

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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 investment products saw outflows totalling US$110m last week following a 7-week run of inflows.
  • US$80m of the outflows derived from North America with the outflows beginning at the start of last week suggesting they are a response to the US Presidential Executive Order to study digital assets more deeply.
  • Multi-asset (multi-coin) and blockchain equity investment products saw inflows totalling US$12m and US$4.1m last week and remain the most popular amongst investors.

Digital asset investment products saw outflows totalling US$110m last week following a 7-week run of inflows. US$80m of the outflows derived from North America with the outflows beginning at the start of last week suggesting they are a response to the US Presidential Executive Order to study digital assets more deeply. Given there has been little price response and that outflows of US$30m were also seen in Europe, highlights the reasons are unclear. Regulatory concerns and geopolitics remain at the forefront of investors’ concerns for digital assets.

Bitcoin saw outflows totalling US$70m last week off the back of low volumes. Investment products traded US$1bn last week compared the average US$1.24bn, representing just 5% of total bitcoin trading volumes.

Ethereum, on a relative basis saw the largest outflows last week, totalling US$51m, outflows year-to-date represent 1.2% of assets under management (AuM).

Solana, Ripple and Polkadot saw minor outflows totalling US$0.3m, US$0.7m and US$0.9m respectively while Cardano and Litecoin saw minor inflows of US$0.2m.

Multi-asset (multi-coin) and blockchain equity investment products saw inflows totalling US$12m and US$4.1m last week and remain the most popular amongst investors with inflows representing 3.2% and 6.7% of AuM respectively.

Flows by Provider

 

Flows by Provider

 

 

Flows by Assets

 

Weekly Crypto Asset Flows by Institution

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Weekly Crypto Asset Flows by Asset

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Digital Asset ETP & Mutual fund Net New Assets

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Crypto Asset Fund Flows as Percentage of Fund AuM

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Flows by Provider

 

Bitcoin ETP & Mutual Fund Tumover as % of Total Bitcoin

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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.