Digital Assets Saw $55M in Outflows Last Week

Digital Assets Saw $55M in Outflows Last Week

Disappointment around the SEC exchange-traded fund decisions has impacted sentiment.

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: etf.com Staff

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]

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.