Outflows Across Altcoins of $6M

Takeaways

• Short investment product inflows represented 75% of the total inflows suggesting on aggregate sentiment was deeply negative for the asset class, while total AuM is now at the lowest point in 2 years at US$22bn.
• Bitcoin saw inflows totalling US$14m, but when offset by the inflows into short investment products the net flows were a negative US$4.3m.
• Ethereum saw the largest inflows on record into short-Ethereum investment products totalling US$14m.
• A raft of outflows were seen across altcoins totalling US$6m

Digital asset investment products saw inflows totalling US$44m last week in what represents very mixed sentiment amongst investors. Short investment product inflows represented 75% of the total inflows suggesting on aggregate sentiment was deeply negative for the asset class, likely being a direct result of the ongoing fallout from the FTX collapse. Total Assets under Management (AuM) is now at the lowest point in 2 years at US$22bn.

Regionally, inflows into short investment products were seen in both the US and Europe although some short products saw outflows implying opinion is divided amongst investors as to whether the market has reached its lows.

Bitcoin saw inflows totalling US$14m, but when offset by the inflows into short investment products the net flows were a negative US$4.3m. AuM on short-Bitcoin is now at US$173m, close to the high of US$186m.

Ethereum saw minor outflows totalling US$0.8m although it also saw the largest inflows on record into short-Ethereum investment products totalling US$14m. This negative sentiment is likely a result of renewed uncertainty over the Shanghai update, which will allow the withdrawal of staking assets, and the hacked FTX ETH assets which sum to ~US$280m.

A raft of outflows were seen across altcoins, most notably Solana, XRP, Binance and Polygon totalling US$6m.

Contact James Butterfill at [email protected]