Short-Bitcoin Digital Assets AUM Fell by $27M

Takeaways

• Digital asset investment products saw minor outflows totalling US$7.5m, although this figure is misleading as the majority of the outflows were from short investment products.
• Sentiment towards Bitcoin improved last week with inflows totalling US$11m, while also seeing outflows from short-Bitcoin products totalling US$11m. 
• Ethereum continues to suffer from minor negative sentiment, posting a 3rd consecutive week of outflows totalling US$4m. We believe worries over the lack of clarity on the timing of un-staking is responsible.
   

Digital asset investment products saw minor outflows totalling US$7.5m, although this figure is misleading as the majority of the outflows were from short investment products. Long-only saw minor inflows totalling US$3.3m with sentiment remaining mixed in the asset class. Investment product volumes summed to just US$753m last week, versus an average of US$2bn a week this year, suggesting low participation amongst investors.

Sentiment towards Bitcoin improved last week with inflows totalling US$11m, while also seeing outflows from short-Bitcoin products totalling US$11m. Recent positive price action and outflows in short-bitcoin saw total assets under management (AuM) fall from their all-time high end-November of US$188m to US$161m last week.

Regionally, the inflows were focussed on Canada and Germany totalling US$12m and US$3.2m respectively. The US saw the most outflows totalling US$15m, 75% of which were outflows from short investment products.

Ethereum continues to suffer from minor negative sentiment, posting a 3rd consecutive week of outflows totalling US$4m. We believe worries over the lack of clarity on the timing of un-staking is responsible.

Litecoin and Polkadot saw outflows of US$0.9m and US$0.4m, while Solana and Polygon saw inflows of US$0.2m and US$0.3m respectively.

Contact James Butterfill at [email protected]