Digital Assets Saw Outflows of $39M Last Week

Takeaways

• Digital asset investment products saw outflows totalling US$39m, representing the 6th consecutive week of outflows totalling US$272m.
• The focus remains on Bitcoin, with outflows totalling US$11m. The outflows in short-bitcoin also continued with US$11m. This run of outflows is far more dramatic for short-bitcoin though, representing 36% of total AuM.
• Altcoins saw outflows last week, most notable were Algorand which saw 65% of AuM outflow last week, and Ethereum at US$5.9m.

Digital asset investment products saw outflows totalling US$39m, representing the 6th consecutive week of outflows totalling US$272m (0.8% of total assets under management). As per last week, volumes remain low, at 58% of this year’s average, this is also reflected in broader digital asset space volumes are only 38%. On a relative basis, investment products are more active than usual compared to the broader market, with last week’s volumes representing almost 8% of the total market, compared to an average of just 2%.

In a repeat of prior weeks, the focus remains on Bitcoin, with outflows totalling US$11m. The outflows in short-bitcoin also continued with US$11m. This run of outflows is far more dramatic for short-bitcoin though, representing 36% of total AuM, while total AuM has fallen from its mid-May peak of US$198m to US$144m peak today. This 27% decline is almost solely outflows, and far greater than long-bitcoin which saw only a 3% decline in AuM over the same period.

Altcoins, which have been relatively insulated from the recent negative sentiment, also saw outflows last week, most notable were Algorand which saw 65% of AuM outflow last week (US$8m), and Ethereum at US$5.9m. While Litecoin and Uniswap saw minor inflows of US$0.5m and US$0.2m respectively.

Blockchain equities also saw minor outflows totalling US$3.4m last week.

Contact James Butterfill at [email protected]