Record Weekly Outflows For Digital Asset Funds

Outflows of $73 million, but negative sentiment cooling off.

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 totaling a weekly record of $73 million, the fifth week of outflows with this run now totalling $532 million.
  • Bitcoin saw outflows totaling $55 million, with four out of the last five weeks seeing outflows totaling US $317 million. Total AUM in bitcoin reached a three-month low of $35 billionn midweek.
  • Ethereum saw outflows totaling $30 million last week, entering its sixth week of outflows totaling $230 million.
  • Solana remains an investor favorite, with inflows totaling $5.4 million last week.

 

 

 

Digital asset investment products saw outflows totaling a weekly record of US $73 million, the fifth week of outflows, with this run now totaling $532 million. This marks the sharpest outflows since 2018 when viewed proportionally as a percentage of total AUM. However, on a daily basis, for the first time this year, we saw inflows on Wednesday and Friday, suggesting the bearish sentiment is beginning to abate after recent positive price moves.

Bitcoin saw outflows totaling $55 million, with four out of the last five weeks seeing outflows totaling $317 million. Total AUM in bitcoin reached a three-month low of $35 billion midweek.

Ethereum saw outflows totaling $30 million last week, entering its sixth week of outflows totaling $230 million. From a relative perspective, ethereum remains the focus of negative sentiment, with outflows representing 1.5% of AUM.

Solana remains an investor favorite, with inflows totaling $5.4 million last week, and has only seen two individual weeks of outflows since August 2021.

Blockchain equity investment products saw minor inflows last week of $0.4 million, seeing a mixture of flows among providers.

 

 

 

 

 

 

 

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.