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.
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.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.