Mixed Week For Digital Asset Funds

December 13, 2021

Takeaways

  • Digital asset investment products saw inflows totalling US$88m last week, although this masks very mixed flows across providers.
  • Some providers saw outflows representing as much as 11% of assets under management (AuM) while others saw inflows representing 14% of AuM.
  • Solana, Tron and multi-asset investment products bucked the trend with inflows totalling US$19m, US$17m and US$15m, respectively.
  • The recent price appreciation of Tron, a “world computer” coin, has pushed its total AuM to above that of Cardano.

 

 

 

 

Digital asset investment products saw inflows totalling US$88m last week, although this masks very mixed flows across providers. Some providers saw outflows representing as much as 11% of assets under management (AuM) while others saw inflows representing 14% of AuM. Suggesting extremely polarised opinion amongst investors, with some panic selling during this most recent price decline, while others seeing it as a buying opportunity. This divergence in views is broadly regional too, with providers in North America seeing flows, while those in Europe seeing outflows.

All the panic selling was focussed on Bitcoin last week, despite this, on an aggregate basis Bitcoin saw inflows totalling US$51m. Despite this trading volumes across investment products fell by 13% to US$3.1bn for the week.

Ethereum saw minor outflows totalling US$17m last week, the first time following 6 weeks of inflows, although it reflects only 0.09% of AuM and is therefore likely not meaningful.

Solana, Tron and Multi-asset investment products bucked the trend with inflows totalling US$19m, US$17m and US$15m respectively. The recent price appreciation of Tron, a “world computer” coin, has pushed its total AuM to above that of Cardano.

 

 

 

 

 

 

 

Contact James Butterfill at [email protected]

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