Digital Asset Outflows Slow To $7M

Investors continue to invest in altcoins.

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]