Digital Assets Saw $72M in Outflows Last Week

Digital Assets Saw $72M in Outflows Last Week

Move likely a reaction to further potential interest rates hikes by the Fed this month.

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 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]

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.