Digital Assets See $30M in Outflows

The negative sentiment last week was likely due in part to continued hawkish Fed rhetoric.

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$30m last week, outflows were seen across most asset types suggesting broad negative sentiment last week that was likely to due to ongoing uncertainties surrounding businesses linked to FTX and continued hawkish rhetoric from the Fed.
  • Bitcoin saw outflows totalling US$17.5m, while short-bitcoin investment products saw minor inflows totalling US$1.1m.
  • Ethereum has now seen its 5th consecutive week of outflows that totalled US$9.1m.

 

 

Digital asset investment products saw outflows totalling US$30m last week in a much more active trading week with trading volumes totalling US$866m compared to the US$678m seen the prior week. Outflows were seen across most asset types and providers suggesting broad negative sentiment last week that was likely to due to ongoing uncertainties surrounding businesses linked to FTX and continued hawkish rhetoric from the US Federal Reserve despite the risks of a recession. This recent price weakness has pulled total assets under management (AuM) to US$22.3bn, similar levels seen during the low points of the FTX collapse.

Bitcoin saw outflows totalling US$17.5m, while short-bitcoin investment products saw minor inflows totalling US$1.1m. We have witnessed similar oscillations in sentiment, but these outflows represent the largest since early September, just after the FED expressed a more hawkish view than expected.

Ethereum has now seen its 5th consecutive week of outflows that totalled US$9.1m last week. The outflows seen this year so far represent a substantial 7.3% of AuM.

Other altcoins saw outflows, most notable of which were Binance at US$1.1m, XRP at US$0.3m and Polkadot at US$0.4m. Solana stood out as the only one to see inflows which totalled US$0.7m.

 

 

 

 

 

 

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.