Volume 179: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Further US$206m outflows as investor fret over interest rate expectations

• Digital asset investment products saw outflows for the second consecutive week totalling US$206m, with trading volumes in ETPs dipping slightly at US$18bn.
• Bitcoin saw US$192m outflows, but few investors saw this as an opportunity to short, with short-bitcoin seeing US$0.3m outflows.
• Blockchain equities saw its 11th consecutive week of outflows totalling US$9m as investors continue to worry over the consequences of the halving on mining companies.

Digital asset investment products saw outflows for the second consecutive week totalling US$206m, with trading volumes in ETPs dipping slightly at US$18bn. These volumes represent a lower percentage of total bitcoin volumes (which continue to rise) at 28%, compared to 55% a month ago. The data suggests appetite from ETP/ETF investors continues to wane, likely off the back of expectations that the FED is likely to keep interest rates at these high levels for longer than expected.

Regionally, the negative sentiment was almost solely from US ETFs, which saw US$244m outflows, with the outflows focussing on the incumbent ETFs, while newly issued ETFs continued to see inflows, but noticeably lower than prior weeks. Canada and Switzerland saw inflows of US$30m and US$8m respectively, while Germany saw minor outflows of US$8m.

Bitcoin saw US$192m outflows, but few investors saw this as an opportunity to short, with short-bitcoin seeing US$0.3m outflows. Ethereum saw US$34m outflows, marking its 6th consecutive week. While multi-asset saw improved sentiment with US$9m inflows last week. Litecoin and Chainlink saw inflows of US$3.2m and US$1.7m respectively.

Blockchain equities saw its 11th consecutive week of outflows totalling US$9m as investors continue to worry over the consequences of the halving on mining companies.

　　Disclaimer: Includes third-party opinions. No financial advice. See Risk Warning.