Largest Weekly Outflows On Record For Crypto Funds

James Butterfill

Head of Research and Investment Strategy

Dec 20, 2021

Reviewed by: James Butterfill

Edited by: James Butterfill

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Takeaways

Digital asset investment products saw outflows totalling US$142m, the first outflow following a 17-week run of inflows.
The outflows represent only 0.23% of total assets under management (AuM), and from an historical perspective are small relative to the outflows in early 2018 where weekly outflows represented up to 1.6% of AuM.
Other altcoins softened the blow with Solana, Polkadot and multi-asset investment products seeing inflows totalling US$6.7m, US$2.5m and US$1.5m respectively.

Flows by Provider

Flows by Assets

Digital asset investment products saw outflows totalling US$142m, the first outflow following a 17-week run of inflows, and the largest weekly outflow on record. The largest previous outflow on record was early June 2021 where weekly outflows totalled US$97m.

While this outflow appears alarming there are several points to consider. Firstly, it comes at a time where there have been considerable outflows across all risk assets following the recent US Federal Reserve statement on tapering. Secondly, outflows represent only 0.23% of total assets under management (AuM), and from an historical perspective are small relative to the outflows in early 2018 where weekly outflows represented up to 1.6% of AuM. Finally, the outflows come at a time of record yearly inflows peaking at US$9.5bn, relative to inflows totalling US$6.7bn in 2020.

Bitcoin saw outflows totalling US$89m, well below the outflows seen in June where they were as much as US$150m.

Ethereum saw record outflows totalling US$64m and has in the past countered Bitcoin’s outflows. Other altcoins softened the blow with Solana, Polkadot and multi-asset investment products seeing in flows totalling US$6.7m, US$2.5m and US$1.5m respectively.