Digital Asset Products Saw $7M in Outflows Last Week

Macro data prompted cautiousness among investors.

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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 minor outflows totalling US$7m last week following a week of macro data that significantly beat expectations to the upside.
  • The focus was primarily Bitcoin, which saw outflows totalling US$10.9m, although there were also outflows from short-bitcoin investment products totalling US$3.5m.
  • Investors seem to be more discerning this year, with select coins performing well, while overall 10 altcoins saw inflows last week totalling US$4.8m.

 

 

Digital asset investment products saw minor outflows totalling US$7m last week following a week of macro data that significantly beat expectations to the upside, leaving some investors spooked by the prospect of additional rate hikes by the US Federal Reserve.

Regionally, there is a divergence in sentiment with Europe seeing inflows totalling US$4.7m, primarily Germany with US$8.3m of inflows. While the Americas saw outflows totalling US$11.7m, primarily the US with outflows of US$10.4m.

The focus was primarily Bitcoin, which saw outflows totalling US$10.9m, although there were also outflows from short-bitcoin investment products totalling US$3.5m.

Multi-asset investment products saw outflows totalling US$2.4m last week, representing the 11th consecutive week of outflows. Investors seem to be more discerning this year, with select coins performing well, such as Ethereum with inflows of US$5.1m last week. Cosmos (enabling interoperability between chains) saw inflows totalling US$1.8m, nearly doubling its AuM (Assets Under Management). 10 altcoins saw inflows last week totalling US$4.8m.

Blockchain equities remain in favour with inflows totalling US$6.7m last week, bringing year-to-date inflows to US$11m.

 

 

 

 

 

 

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.