Digital Asset Investments Saw Outflows of $23M

Digital Asset Investments Saw Outflows of $23M

The trend follows a continuation of negative sentiment from the FTX fallout.

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 outflows totalling US$23m in a continuation of the negative sentiment seen the previous week.
  • Short investment products saw a mixture of inflows and outflows that varied across providers, while long-only investment products predominantly saw outflows.
  • Ethereum saw minor outflows totalling US$6m while the large inflows into short products seen the previous week were completely reversed with an outflow of US$15.2m.
  • Blockchain equities are also suffering from the FTX collapse, seeing US$13m outflows last week.

 

 

Digital asset investment products saw outflows totalling US$23m in a continuation of the negative sentiment seen the previous week. Short investment products saw a mixture of inflows and outflows that varied across providers, while long-only investment products predominantly saw outflows.

Regionally, the negative sentiment was focussed on the US, Sweden and Canada which all saw either outflows from long investment products or inflows into short products. Germany and Switzerland stood out as investors in aggregate added to long only or sold out of short positions.

Bitcoin saw outflows totalling US$10m, small when looking at the bigger picture of US$322m of inflows year-to-date, while short investment products saw inflows totalling US$9.2m, highlighting sentiment remains negative.

Ethereum saw minor outflows totalling US$6m while the large inflows into short products seen the previous week were completely reversed with an outflow of US$15.2m. It is still too early to say this is a positive change in sentiment.

Outflows continued in altcoins, XRP, Polygon and Tezos were the main focus totalling US$0.5m, US$0.3m and US$0.2m respectively.

Blockchain equities are also suffering from the spill over from the FTX collapse, seeing US$13m outflows last week.

 

 

 

 

 

 

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.