Digital Assets Investment Products See $32M In Outflows

But rising prices push assets under management to their highest since August 2022.

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$32m last week, the largest since late December 2022. Mid-way through last week the outflows were much higher at US$62m, but sentiment improved by Friday.
  • Bitcoin bore the brunt of the negative sentiment, seeing nearly US$25m of outflows, while short-bitcoin investment products saw inflows of US$3.7m.
  • Blockchain equities saw inflows totalling US$9.6m last week and have seen 6 consecutive weeks of inflows.

 

 

Digital asset investment products saw outflows totalling US$32m last week, the largest since late December 2022. Mid-way through last week the outflows were much higher at US$62m, but sentiment improved by Friday with inflows of US$30m. The negative sentiment amongst ETP investors was not expressed in the broader market with Bitcoin prices rising by 10% over the week, this price appreciation pushed total assets under management (AuM) to US$30bn, their highest level since August 2022. We believe this is due to ETP investors being less optimistic on recent regulatory pressures in the US relative to the broader market.

Bitcoin bore the brunt of the negative sentiment, seeing nearly US$25m of outflows, while short-bitcoin investment products saw inflows of US$3.7m and has seen some of the largest inflows YTD of US$38m, second only to Bitcoin with US$158m.

The negative sentiment was very mixed, with Ethereum, Cosmos, Polygon and Avalanche seeing outflows of US$7.2m, US$1.6m, US$0.8m and US$0.5m respectively. While Aave, Fantom, XRP, Binance and Decentraland all saw inflows between US$0.36m – US$0.26m.

Blockchain equities saw inflows totalling US$9.6m last week and have seen 6 consecutive weeks of inflows highlighting a more constructive sentiment amongst investors.

 

 

 

 

 

 

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.