Record Outflows For Digital Asset Funds

Digital asset investment products saw outflows totaling a weekly record of US$207 million.

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

Takeaways

  • Digital asset investment products saw outflows totalling a weekly record of US$207m. This follows the outflows that began mid-December and the 4-week run now totals US$465m.
  • Bitcoin saw outflows totalling US$107m last week in what we believe was a direct response to the FOMC minutes which revealed the US Federal Reserve’s concerns for rising inflation.
  • Ethereum saw outflows totalling US$39m last week, bringing the 5-week run of outflows to US$200m.
  • Blockchain equities investment products did not escape the negative sentiment with outflows totalling US$10m over the week.

 

 

 

 

Digital asset investment products saw outflows totalling a weekly record of US$207m. This follows the outflows that began mid-December and the 4-week run now totals US$465m, representing 0.8% of total assets under management (AuM), bringing a sharp stop to US$3.6bn of inflows that began in August 2021.

Bitcoin saw outflows totalling US$107m last week in what we believe was a direct response to the FOMC minutes which revealed the US Federal Reserve’s concerns for rising inflation, and the fear amongst investors of an interest rate hike. Over the last 4 weeks we have seen investment products representing up to 25% of total Bitcoin trading turnover, highlighting greater investor activity than usual.

Ethereum saw outflows totalling US$39m last week, bringing the 5-week run of outflows to US$200m. On a proportional basis to this is far greater than Bitcoin’s outflows representing 1.4% of AuM. The outflows from multi-asset funds totalling US$37m suggested investors were much less discerning in selling positions although Solana and XRP both saw minor inflows.

Blockchain equities investment products did not escape the negative sentiment with outflows totalling US$10m over the week.

 

 

 

 

 

 

 

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.