Digital Assets Saw $15.6M in Outflows Last Week

Short-bitcoin investment products saw outflows for the third consecutive week.

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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$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]

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.