Crypto Outflows Push Assets Under Management to Lowest Level Since Feb 2021

Outflows from digital asset investment products amounting to $39 million last week have pushed total assets under management (AuM) to their lowest point since Feb 2021.

Currently at $36.302 billion, AuM is down some 59% from its peak in Nov 2021, according to the latest report from CoinShares. The $102 million in outflows experienced the week prior, and larger crypto winter overall, could be attributed to hawkish rhetoric from the U.S. Federal Reserve, according to the previous report.

Despite the prolonged negative sentiment, the latest report emphasized that year-to-date flows still remain positive at $403 million.

Last week’s data also indicated a significant regional polarization of views. Exchanges in the U.S., Europe and Brazil actually saw inflows amounting to $79 million, $12 million and $12 million respectively. Yet, together they could not compete with the $141 million in outflows experienced in Canada alone last week.

Outflows may have peaked

Bitcoin-based investment products actually saw gains of $28 million last week, which the report said was due to weak prices. Month-to-date flows still remain positive at $46 million. Conversely, short bitcoin AuM peaked to an all-time-high of $64 million towards the beginning of last week. However, the report underscored that record outflows of $5.8 million since then indicates negative sentiment may be close to peaking.

Meanwhile, Ethereum-based products continued with 11 straight weeks of outflows, this past week amounting to $70 million. Month-to-date outflows of $147 million have now propped up year-to-date outflows to $459 million.

Other altcoins saw minor outflows, including Tron, Cardano and Polkadot, losing $900,000, $400,000 and $300,000 respectively.

On the other hand, multi-asset investment products, which have proven the most resilient in terms of inflows this year, still managed inflows of $9 million last week.

Benefitting from investor concerns over the Merge for ETH2.0, according to the report, Solana saw inflows of $700,000, bringing year-to-date inflows to $109 million.