Crypto funds hit half-billion dollar outflow streak as Solana, Cardano and XRP buck trend

Quick Take

  • Digital asset investment products saw outflows of $54 million last week, marking the 5th consecutive week of decline and adding to nearly $0.5 billion in nine-week aggregate outflows.
  • Bitcoin funds were hardest hit, representing 85% of the outflows, while Solana, Cardano and XRP products bucked the trend.

Crypto investment products at asset managers such as Grayscale, 21Shares, Bitwise and ProShares saw outflows of $53.5 million last week — adding to a five-week streak of consecutive declines.

Outflows cooled slightly from the $59.3 million witnessed in the prior week, though with outflows experienced in eight out of the last nine weeks, aggregate outflows are now up to $455 million for the period, CoinShares research head James Butterfill noted in the digital asset manager’s latest report.

Year-to-date net inflows have fallen to just $51 million following the outflow streak, having previously enjoyed a good start to 2023. The U.S. market was the primary driver behind the negative sentiment, with 77% of the outflows, Butterfill added. Germany, Canada and Sweden also witnessed significant outflows last week regionally.

Blockchain equities were also affected, marking their sixth consecutive week of outflows, which totaled $9.6 million last week.

However, trading volume was up 42% to over $1 billion — up from the prior week’s $754 million.

Weekly crypto asset flows. Image: CoinShares.

Weekly crypto asset flows. Image: CoinShares.

Bitcoin products bear the brunt as Solana, Cardano and XRP buck the trend

Bitcoin funds dominated the outflows, shedding $45 million last week — some 85% of the total. Despite generating the largest single week of inflows since March in the prior week, short bitcoin funds also had outflows of $3.8 million — though it remains the most popular digital asset investment product month-to-date.

Ether wasn't spared either, seeing outflows of $4.8 million despite what Butterfill describes as attractive investment fundamentals and high demand for its staking yield. BNB and Polygon products also experienced minor outflows of $0.3 million each.

However, Solana, Cardano and XRP funds bucked the trend, witnessing inflows of $0.7 million, $0.4 million and $0.1 million, respectively — indicating potential pockets of optimism in the digital asset space.

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