Digital Asset Products See $5M in Outflows Last Week

Investor apathy from September continues.

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$5m last week in a continuation of this apathetic period that began in September.
  • Investment product volumes which were US$758m, the lowest since October 2020 and far off the average of US$7bn a week seen this time last year. 
  • Bitcoin saw minor inflows of US$4.6m for the 6th consecutive week while short-bitcoin investment products saw outflows of US$7.1m. 
  • Ethereum saw minor outflows for the third consecutive week totalling US$2.5m bringing outflows post the Merge to US$11.5m.


 

Digital asset investment products saw outflows totalling US$5m last week in a continuation of this apathetic period that began in September. This is also highlighted by investment product volumes which were US$758m, the lowest since October 2020 and far off the average of US$7bn a week seen this time last year. Excluding the outflows from short products would have led to an overall minor inflow last week.

Regionally, Sweden, Canada and the US saw the most action with outflows totalling US$4.5m, US$1.9m and US$1.2m, while Germany, Brazil and Switzerland all saw minor inflows.

Bitcoin saw minor inflows of US$4.6m for the 6th consecutive week while short-bitcoin investment products saw outflows of US$7.1m. While flows have been mixed recently for short-bitcoin, October represents the largest outflow on record of US$15m, representing 10% of total assets under managements (AuM) and the only investment product showing some semblance of conviction in direction of trade at present.

Ethereum saw minor outflows for the third consecutive week totalling US$2.5m bringing outflows post the Merge to US$11.5m, just 0.2% of AuM.

XRP saw inflows of US$0.8m, while small they are close to the largest since the lawsuit with the SEC began.

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.