Digital Assets Saw $55M in Outflows Last Week
Disappointment around the SEC exchange-traded fund decisions has impacted sentiment.
Takeaways
- Digital asset investment products saw outflows totalling US$55m, we believe this is in reaction to recent media highlighting that a decision by the US Securities & Exchange Commission in allowing a US spot-based ETF is not imminent.
- Bitcoin saw outflows totalling US$42m, reversing the inflows seen the prior week, while short-bitcoin saw outflows for almost the 17th consecutive week.
- Ethereum saw US$9m outflows, while Polygon, Litecoin and Polkadot also saw outflows of US$0.9m, US$0.6m and US$0.5m respectively.
Digital asset investment products saw outflows totalling US$55m, we believe this is in reaction to recent media highlighting that a decision by the US Securities & Exchange Commission in allowing a US spot-based ETF is not imminent. Market volumes remain well below average, primarily due to seasonal effects, leaving prices vulnerable to large trades. With the panic last week leading to a 10% decline in total assets under management (AuM), settling at US$32.3bn at the end of last week.
The outflows were broad across product providers although regionally were focussed primarily on Canada and Germany which saw outflows of US$36m and US$11m respectively. Switzerland bucked the trend seeing minor inflows totalling US$3.5m.
Bitcoin saw outflows totalling US$42m, reversing the inflows seen the prior week, while short-bitcoin saw outflows for almost the 17th consecutive week (except US$2k inflows) totalling US$2.2m.
This week the flows were not just focussed on Bitcoin, with a broad selection of altcoins seeing outflows. Ethereum saw US$9m outflows, while Polygon, Litecoin and Polkadot saw outflows of US$0.9m, US$0.6m and US$0.5m respectively.
Blockchain equities did not escape the negative sentiment, seeing US$6m outflows last week.
Contact James Butterfill at [email protected]
