Digital Asset Outflows Slow To $7M

Investors continue to invest in altcoins.

JamesButterfill310x310
|
Head of Research and Investment Strategy
|
Reviewed by: James Butterfill
,
Edited by: James Butterfill

Takeaways:

  • Digital asset investment products saw outflows cool last week, totalling US$7.2m, bringing total outflows in this 3-week run to US$219m.
  • Ethereum continues to suffer with a 3rd week of outflows totalling US$16.9m, bringing outflows year-to-date to US$169m
  • Altcoins remain the focus amongst investors, with notable inflows into Avalanche, Solana, Terra and Algorand of US$1.8m, US$0.8m, US$0.7m and US$0.2m respectively.
  • Despite the threat of global rising interest rates and its broad negative price impact on technology companies last week, blockchain equities saw minor inflows last totalling US$3m.

 

 

Digital asset investment products saw outflows cool last week, totalling US$7.2m, bringing total outflows in this 3-week run to US$219m. Despite recent weaker sentiment flows year-to-date remain positive at US$389m although there are some divergences in assets emerging.

Bitcoin saw minor inflows totalling US$2.6m last week although month-to-date outflows remain at US$178m. Ethereum continues to suffer with a 3rd week of outflows totalling US$16.9m, bringing outflows year-to-date to US$169m.

Altcoins remain the focus amongst investors, with notable inflows into Avalanche, Solana, Terra and Algorand of US$1.8m, US$0.8m, US$0.7m and US$0.2m respectively.

Short bitcoin investment products saw minor inflows last week totalling US$0.4m.

The total number of investment product launches has cooled, with only 11 in Q1 2022 versus 24 in Q4 2021. Of the 23 different investment products by asset type, 10 were launched this year. There has been a focus on altcoins, most notable of which were Avalanche, Tezos and Terra with US$49m, US$30m and US$16m of assets under management respectively.

Despite the threat of global rising interest rates and its broad negative price impact on technology companies last week, blockchain equities saw minor inflows last week totalling US$3m.

 

 

 

 

 

 

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.