Investors Buy Into Digital Asset Price Weakness

Investors saw the recent stablecoin de-peg and its associated broad sell-off as a buying opportunity.

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
  • Digital asset investment products saw record weekly inflows for this year, totalling US$274m last week. A strong signal that investors saw the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity.
  • Bitcoin was the primary benefactor, with inflows totalling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset.
  • UST, the stable coin at the epicentre of this recent price correction, saw AuM fall by 99% over the week, despite this some intrepid investors added US$0.043m to positions.
  • Blockchain equity investors panicked, with outflows totalling US$51m.

 

 

Digital asset investment products saw record weekly inflows for this year, totalling US$274m last week. A strong signal that investors saw the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity. North American investors saw inflows totalling US$312m, in contrast to European investors, where sentiment was polarised but in aggregate saw outflows totalling US$38m.

Bitcoin was the primary benefactor, with inflows totalling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset. Short-Bitcoin saw minor inflows totalling US$0.7m, a slow-down from previous weeks.

UST, the stable coin at the epicentre of this recent price correction, saw assets under management (AuM) fall by 99% over the week, despite this some intrepid investors added US$0.043m to positions.

Ethereum continued to see outflows totalling US$27m last week, this has been a steady trickle out this year with outflows now reaching US$236m, representing a substantial 2.6% of total AuM.

Multi-asset investment products saw inflows totalling US$8.6m suggesting investors saw a diversified approach as an opportunity to buy into this recent price weakness.

Blockchain equity investors panicked, with outflows totalling US$51m, the third largest outflow on record.

 

 

 

 

 

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.