Digital Assets Lost $54M Last Week

It's the fourth consecutive week of outflows, totaling $200 million.

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 a 4th consecutive week of outflows totalling US$54m, bringing the total outflow to US$200m, representing 0.6% of total assets under management (AuM).
  • Bitcoin saw outflows totalling US$38m, representing 80% of all outflows over the period, when combined with short-bitcoin outflows they highlight that the recent investor activity has almost solely been focussed on the asset.
  • Inflows were seen across 8 different altcoin assets, suggesting investors are becoming more adventurous.

 

 

Digital asset investment products saw a 4th consecutive week of outflows totalling US$54m, bringing the total outflow to US$200m, representing 0.6% of total assets under management (AuM). The recent price declines have seen total AuM fall by 13% since their mid-April peak.

Similar to last week, the outflows were broad from a regional perspective, suggesting negative sentiment is not concentrated on just a few investors. That said, the outflows were focussed primarily in Europe, particularly when taking into account that 84% of outflows in the US were from investors selling out of short positions.

Bitcoin saw outflows totalling US$38m, with the last four weeks of outflows now totalling US$160m. This represents 80% of all outflows over the period, when combined with short-bitcoin outflows they represent US$201m highlighting that the recent investor activity has almost solely been focussed on the asset.

Multi-assets investments saw US$7m outflows last week while, unusually, inflows were seen across 8 different altcoin assets, suggesting investors are becoming more adventurous, and selective. The most notable inflows were to Cardano, Tron and Sandbox which all saw inflows of US$0.5m, US$0.23m and US$0.2m respectively. Binance was the only altcoin to see outflows totalling US$0.5m.

 

 

 

 

 

 

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.