Outflows From Digital Asset Funds Continue

Digital asset investment products saw a third consecutive week of outflows totaling $79 million in what is now the longest bear run in outflows since February 2018.

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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 a third consecutive week of outflows totalling US$79m in what is now the longest bear run in outflows since February 2018.
  • The focus of outflows continues to be Bitcoin which has endured its 6th consecutive week of outflows totalling US$89m.
  • Ethereum saw minor outflows of US$1.9m, combined with outflows from the previous week now totalling US$14.6m.
  • Bucking the trend last week were multi-asset investment products which saw inflows of US$10m last week.

 

 

 

 

Digital asset investment products saw a third consecutive week of outflows totalling US$79m in what is now the longest bear run in outflows since February 2018. During the bearish sentiment of 2018 there were 7 consecutive weeks of outflows.

The focus of outflows continues to be Bitcoin which has endured its 6th consecutive week of outflows totalling US$89m. The outflows now total US$487m this year representing 1.6% of assets under management. Sentiment remains mixed as evidenced by some providers seeing inflows while others continue to see outflows.

Ethereum saw minor outflows of US$1.9m, combined with outflows from the previous week now totalling US$14.6m. As a percentage of assets under management it represents 0.14%, implying most of the negative sentiment has been focussed on Bitcoin. Weekly trading volumes in Ethereum investment products have fallen by 80% since the May highs.

Bucking the trend last week were multi-asset investment products which saw inflows of US$10m last week. Year to date net inflows now total US$351m, representing 16% of assets under management.

 

 

 

 

 

 

 

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.