8 Straight Weeks of Digital Asset Outflows

Takeaways

• Digital asset investment products saw outflows totalling US$88m, bringing this 8-week run of outflows to US$417m. We believe that this is monetary policy related, with currently no clear end in sight to interest rate rises, leaving investors cautious.
• Ethereum saw outflows of US$36m, the largest single week of outflows since the Merge.
• Altcoins have seen inflows year-to-date, in stark contrast to Bitcoin and Ethereum.

Digital asset investment products saw outflows totalling US$88m, bringing this 8-week run of outflows to US$417m, closing in on the record 12 week run of outflows seen in April to June last year. We believe, like last year, that this is monetary policy related, with currently no clear end in sight to interest rate rises, leaving investors cautious.

87% of the outflows were focussed on one provider, accordingly almost all the outflows were North America based. Minor inflows of US$9.2m were seen in Switzerland, while Germany saw outflows of US$9.4m.

Bitcoin saw outflows totalling US$52m, with this 8-week run of outflows totalling US$254m, representing 1.2% of total assets under management (AuM). Short-bitcoin saw US$1.1m outflows, with its 7-week run of outflows representing 44% of AuM.

Ethereum saw outflows of US$36m, the largest single week of outflows since the Merge in September last year, although has faired relatively better than bitcoin seeing total outflows representing only 0.6% of AuM.

Altcoins saw mixed fortunes, with minor inflows into Litecoin, XRP and Solana and outflows form Polygon. Interestingly, on aggregate, altcoins have seen inflows year-to-date (except Tron), in stark contrast to Bitcoin and Ethereum.

Contact James Butterfill at [email protected]