Digital Assets Saw $15.6M in Outflows Last Week

Takeaways

• Digital asset investment products saw minor outflows totalling US$15.6m last week, and a bad start to the month with outflows totalling US$19m.
• Bitcoin saw outflows totalling US$13m for the week. This follows a 7-week run of inflows and comes after the FOMC raised interest rates by a further 75 basis points.
• Short-Bitcoin investment products also saw outflows for the 3rd consecutive week totalling US$7.1m, bringing total outflows to US$28m.
• XRP saw inflows for the 3rd week totalling US$1.1m implying improving investor confidence as the SEC case against Ripple looks increasingly fragile.

Digital asset investment products saw minor outflows totalling US$15.6m last week, and a bad start to the month with outflows totalling US$19m. However, the flows activity remains very low relative to history, with this doldrum period lasting 8 weeks now.

Regionally, the negative activity was focussed on the Americas, with the US, Canada and Brazil seeing outflows of US$21m, US$2.1m and US$1.8m respectively. This was offset by inflows from Germany at US$4m and Switzerland at US$6.8m.

Most of the negative sentiment was directed towards Bitcoin, with outflows totalling US$13m for the week. This follows a 7-week run of inflows and comes after the FOMC raised interest rates by a further 75 basis points, while suggesting they were going to continue raise rates for longer than was previously stated.

Opinion about the FOMC messaging was mixed though, as short-Bitcoin investment products also saw outflows for the 3rd consecutive week totalling US$7.1m, bringing total outflows to US$28m (22% of total assets under management (AuM)), being the largest run of outflows on record.

After a 4-week run of outflows, Ethereum saw minor inflows totalling US$2.7m. XRP saw inflows for the 3rd week totalling US$1.1m implying improving investor confidence as the SEC case against Ripple looks increasingly fragile.

Contact James Butterfill at [email protected]