Digital Assets Saw $72M in Outflows Last Week
Move likely a reaction to further potential interest rates hikes by the Fed this month.
Takeaways
- Digital asset investment products saw outflows for the 2nd consecutive week totalling US$72m in what we believe is a reaction to the likeliness of further interest rate hikes by the US Federal Reserve.
- Bitcoin saw the majority or outflows totalling US$46m last week while short-Bitcoin also saw its largest outflows since December 2022.
- Ethereum also suffered, seeing outflows totalling US$19m last week, its largest week of outflows since the Merge in September 2022.
Digital asset investment products saw outflows for the 2nd consecutive week totalling US$72m in what we believe is a reaction to the likeliness of further interest rate hikes by the US Federal Reserve this May. Volumes remain subdued for the broader crypto market (50% less than year average) while ETP investment product volumes at US$1.7bn for the week are 16% above the year average.
Regionally, outflows were unusually seen across all geographies and providers, but primarily in Germany and Canada totalling US$40m and US$14m respectively.
Bitcoin saw the majority or outflows totalling US$46m last week while short-Bitcoin also saw its largest outflows since December 2022 totalling US$7.8m. Short-bitcoin remains the winner in terms of inflows year-to-date with net flows of US$119m.
Ethereum also suffered, seeing outflows totalling US$19m last week, its largest week of outflows since the Merge in September 2022.
A small selection of altcoins saw minor inflows, most notable were Solana, Algorand and Polygon with US$0.2m US$0.17m and US$0.14m respectively.
Blockchain equities did not escape the negative sentiment either, seeing outflows of US$2.5m last week, although YTD net flows remain positive at US$27m.
Contact James Butterfill at [email protected]