Digital Assets Shed a Record $255M

It was the largest single weekly outflow on record, representing 1.0% of total AUM.

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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 for the 5th consecutive week totalling US$255m, the largest single weekly outflows on record representing 1.0% of total assets under management (AuM).
  • AuM has fallen by 10% over the week, retracing back to levels seen at the beginning of 2023. The outflows have also wiped out all the inflows seen this year.
  • Bitcoin, being the largest digital asset, was the primary focus, seeing outflows totalling US$244m last week. Short-bitcoin also saw outflows totalling US$1.2m.

 

 

Digital asset investment products saw outflows for the 5th consecutive week totalling US$255m, the largest single weekly outflows on record representing 1.0% of total assets under management (AuM).  Regionally, the negative sentiment was broad, with negative sentiment seen in both North America and Europe, the US stood out though, with inflows of US$11m, primarily into long-bitcoin.

While the outflows are the largest on record, they aren’t when expressed as a percentage of total AuM, that record was in May 2019 when US$51m of outflows were seen. It highlights just how much total AuM has risen since May 2019 (816%). Nonetheless, AuM has fallen by 10% over the week, retracing back to levels seen at the beginning of 2023. The outflows have also wiped out all the inflows seen this year, with outflows now standing at US$82m year-to-date.

Bitcoin, being the largest digital asset, was the primary focus, seeing outflows totalling US$244m last week. Short-bitcoin also saw outflows totalling US$1.2m, although it is now the investment product with the largest inflows year-to-date of US$49m.

Ethereum also saw outflows totalling US$11m last week, while its flows year-to-date have also turned negative, but to a much lesser extent of US$3m. Other altcoins saw minor inflows, such as Solana (US$0.4m) and XRP (US$0.3m).

 

 

 

 

 

 

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.