Crypto Investment Products Close Fifth Straight Week of Outflows

Digital asset and crypto investment products saw $73 million in outflows last week, adding to the five-week streak now totaling $532 million.

As a percentage of total assets under management (AuM), this period marked the sharpest outflows since 2018, according to the latest CoinShares report.

However, the report also acknowledged the first daily inflows of the year on Wednesday and Friday last week. According to the report, these positive price moves suggest an easing of the recent bearish sentiment. 

As usual, Bitcoin-based investment products saw the largest amount in traffic over the past week, totaling $55 million in outflows. This makes for outflows in four weeks out of the past five, which now amount to $317 million. The report also emphasized that total AuM in Bitcoin reached a three-month low of $35 billion midway through last week.

Meanwhile, Ethereum-based investment products saw another $30 million in outflows this past week. This makes it the sixth consecutive week of outflows, which now amount to $230 million, representing roughly 1.5% of AuM. Notably, Solana continued to buck the trend, with investment products seeing $5.4 million in inflows after experiencing only two weeks of outflows since August 2021. While also seeing a mixture of traffic, blockchain equity investment products also came out positive, seeing minor inflows last week of around $400,000.

Despite the continuing negative trend, outflows were significantly less than last week when outflows from crypto investment products amounted to a record $207 million. The CoinShares report believed the $107 million outflows from Bitcoin-backed products to be “a direct response to the FOMC minutes which revealed the US Federal Reserve’s concerns for rising inflation, and the fear amongst investors of an interest rate hike.”

The report also highlighted that the high turnover of the Bitcoin-backed products over the prior four weeks indicated higher than usual investor activity. 

Starting in mid-December, the current streak of outflows ended a run of 17 consecutive weeks of inflows starting in August 2021, which eventually amounted to $3.6 billion.