Record Outflows From Short Bitcoin

Digital asset investment products at lowest point since February 2021.

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
  • Digital asset investment products saw outflows totalling US$39m with total assets under management (AuM) now at their lowest point since February 2021, at US$36bn, down 59% from the November 2021 peak.
  • Bitcoin saw inflows totalling US$28m last week and looks to be benefitting from weak prices with month-to-date inflows at US$46m.
  • Short-Bitcoin AuM peaked to an all-time-high of US$64m at the beginning of last week but saw record outflows totalling US$5.8m suggesting negative sentiment is close to its peak.

 

 

Digital asset investment products saw outflows totalling US$39m with total assets under management (AuM) now at their lowest point since February 2021, at US$36bn, down 59% from the November 2021 peak. Despite the recent negative sentiment, year-to-date flows remain positive at US$403m.

The aggregate data masks a significant regional polarisation of views, with last weeks’ outflows almost solely from Canadian exchanges (US$141m), while the US, Europe and Brazil exchanges saw inflows totalling US$79m, US$12m and US$12m respectively.

Bitcoin saw inflows totalling US$28m last week and looks to be benefitting from weak prices with month-to-date inflows at US$46m. Short-Bitcoin AuM peaked to an all-time-high of US$64m at the beginning of last week but saw record outflows totalling US$5.8m suggesting negative sentiment may be close to its peak.

Multi-asset investment products, the most resilient in terms of inflows this year, saw inflows totalling US$9m last week.

Ethereum continues to suffer with outflows totalling US$70m last week having suffered 11 straight weeks of outflows, bringing year-to-date outflows to US$459m. Solana looks to be benefitting from investors worries over The Merge (ETH2), with inflows of US$0.7m last week and US$109m year-to-date.

 

 

 

 

 

 

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.