Digital Assets See $17M in Outflows

The poor sentiment likely represents continued investor concerns about regulatory uncertainty.

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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$17m last week, marking the 4th consecutive week of negative sentiment.
  • Bitcoin remains the focus, with outflows for the 4th consecutive week totalling US$20m, while short-bitcoin saw inflows for a third week totalling US$1.8m.
  • The poor sentiment likely represents continued investor concerns over regulatory uncertainty for the asset class.

 

Digital asset investment products saw minor outflows totalling US$17m last week, marking the 4th consecutive week of negative sentiment. Volumes across investment products were low at US$844m for the week, but a similar situation was seen for the entire Bitcoin market volumes, averaging US$57bn, 15% lower than usual.

Regionally, sentiment looks to have flipped, with the US seeing inflows totalling US$7.6m while Europe saw outflows of US$23m.

Bitcoin remains the focus, with outflows for the 4th consecutive week totalling US$20m, while short-bitcoin saw inflows for a third week totalling US$1.8m. Despite the recent inflows into short-bitcoin, total assets under management (AuM) have risen by only 4.2% ytd compared to long-bitcoin AuM having risen by 36%, suggesting short positions have not delivered the returns some investors expected this year so far. Nonetheless, it likely represents continued investor concerns over regulatory uncertainty for the asset class.

Minor inflows were seen in altcoins last week, Ethereum and Solana saw US$0.7m, US$0.34m respectively. While Binance and Cosmos saw outflows of US$0.38m and US$0.21m respectively.

Blockchain equity investors bucked the trend, remaining bullish with inflows of US$1.6m last week.

 

 

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.