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Volume 175: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Hesitancy amongst investors led to record net outflows of US$942m

  • Digital asset investment products saw record weekly outflows totalling US$942m, the first outflow following a record 7-week run of inflows totalling US$12.3bn.
  • New ETF issuers in the US saw US$1.1bn inflows, partially offsetting incumbent Grayscale’s significant US$2bn outflows last week.
  • The rest of the altcoin space fared well, seeing a net inflows of US$16m, most notable were Polkadot (US$5m), Avalanche (US$2.9m) and Litecoin (US$2m)..

Digital asset investment products saw record weekly outflows totalling US$942m, the first outflow following a record 7-week run of inflows totalling US$12.3bn. Trading volumes in ETPs, while high at US$28bn for the week, were 2/3rds that of the prior week. The recent price correction wiped US$10bn off total assets under management (AuM) but remain above prior cycle highs at US$88bn.

We believe the recent price correction led to hesitancy from investors, leading to much lower inflows into new ETF issuers in the US, which saw US$1.1bn inflows, partially offsetting incumbent Grayscale’s significant US$2bn outflows last week.

Poor sentiment was not just focussed on the US, with Sweden, Switzerland, Hong Kong and Germany seeing outflows of US$37m, US$25m, US$35m and US$4m respectively. However, Brazil and Canada both saw inflows totalling US$9m and US$8.4m respectively.

96% of the flows were Bitcoin, which saw US$904m outflows, while short-bitcoin also saw minor outflows totalling US$3.7m.

Ethereum, Solana and Cardano also suffered, seeing US$34m, US$5.6m and US$3.7m respectively. The rest of the altcoin space fared well, seeing a net inflows of US$16m, most notable were Polkadot (US$5m), Avalanche (US$2.9m) and Litecoin (US$2m).

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