5 Straight Weeks of Digital Asset Outflows

Takeaways

• Digital asset investment products saw outflows totalling US$32m, representing the 5th consecutive week of outflows totalling US$232m.
• The outflows in Bitcoin of US$33m represented most of the negative sentiment, as it has done over the last 5 weeks.
• Altcoins, with the exception of Ethereum (US$1m outflow), saw inflows, most notable of which were Avalanche and Litecoin.

Digital asset investment products saw outflows totalling US$32m, representing the 5th consecutive week of outflows totalling US$232m (0.7% of total assets under management). Volumes totalled US$900m for the week, 40% below this year’s average. Volumes for the broader market on trusted exchanges hit their lowest level since late-2020 at US$20bn for the week.

Regionally, Germany dominated the outflows, totalling US$24m, representing 73% of all outflows. The US and Switzerland followed with US$5m and US$3.3m respectively, while minor inflows were seen in Brazil (US$1.3m) and Canada (US$2.2m).

The outflows in Bitcoin of US$33m represented most of the negative sentiment, as it has done over the last 5 weeks. Short-bitcoin also saw minor outflows of US$1.3m for the week. Combined outflows for these investment products now total US$235m over the course of the last 5 weeks. It is unclear why there is such coordinated negative sentiment for both long and short investment products.

Altcoins, with the exception of Ethereum (US$1m outflow), saw inflows, most notable of which were Avalanche and Litecoin at US$0.7m and US$0.3m respectively.

Blockchain equity ETFs saw minor outflows for the second consecutive week of US$2m last week.

Contact James Butterfill at [email protected]