Altcoins Favored Following Recent Price Crash

Altcoins Favored Following Recent Price Crash

Plus, digital asset investment products saw outflows of $5.1 million last week.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: Lisa Barr
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Edited by: Lisa Barr

Takeaways

  • Digital asset investment products saw minor outflows totalling US$5.1m. The end of the week saw minor inflows following the news that one of the world’s largest asset managers has applied for Bitcoin ETP in the US.
  • Despite improving regulatory conditions in Hong Kong, we have not seen any measurable inflows into ETPs year—to-date.
  • The prior week crash in altcoin prices prompted investors to add to positions, with inflows totalling US$2.4m.

 

 

Digital asset investment products saw minor outflows totalling US$5.1m. The end of the week saw minor inflows following the news that one of the world’s largest asset managers has applied for a Bitcoin ETP in the US, although these inflows were not enough to offset outflows seen earlier in the week. Consequently, a 9th week of outflows was recorded, with this run of outflows now totalling US$423m.

Regionally, the US and Germany saw minor inflows of US$3.7m and US$2.4m respectively. Looking at total inflows year-to-date, the US remains on top with inflows of US$147m, while Canada lags with outflows of US$277m. Despite improving regulatory conditions in Hong Kong, we have not seen any measurable inflows into ETPs year—to-date while total assets under management (AuM) remain low at US$39m.

The prior week crash in altcoin prices prompted investors to add to positions, with inflows totalling US$2.4m, with XRP, Cardano and Polygon being the focus, seeing inflows of US$1m, US$0.6m and US$0.2m respectively.

Ethereum saw the largest outflows for the week totalling US$5m, while both Tron and Avalanche saw outflows of US$0.4m.

Blockchain equities saw the largest outflows since FTX, totalling US$12.3m.

 

 

 

 

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.