Crypto Asset Funds had Record Outflow for Second Week in a Row; Cardano Attracted its Largest Inflow

Multi-asset and Polkadot investment products also saw inflows along with Litecoin, Stellar, and Ripple, representing investors “actively choosing proof of stake coins based on environmental considerations.”


Digital asset investment products saw yet another record outflow for the second consecutive week.

For the week ending May 21, 2021, another new record of outflows totaling $97 million occurred, representing only 0.2% of total assets under management (AUM).

Compared to net inflows for the year to date, $5.5 billion, the outflows remain low at 11.8% of AUM. Still, it represents “a net change in sentiment following increasing regulatory scrutiny and concerns over Bitcoin’s environmental credentials,” reads the weekly report from CoinShares.

The outflows for Bitcoin (BTC) were, in fact, lower at $111 million last week versus $115 million the previous week. BTC -4.45% Bitcoin / USD BTCUSD $ 42,141.47
-$1,875.30-4.45%
Volume 40.97 b Change -$1,875.30 Open $42,141.47 Circulating 18.82 m Market Cap 793.31 b
46 min Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 1 h Twitter Chooses “Global, Barrier-Less Option” for Tipping and to Help Creators Join the “Decentralized Internet” 1 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August

What added to the total record outflows was Ethereum (ETH) which saw minor outflows of $12.6 million following its long run of record-breaking inflows totaling $924 million year to date, which is 8% of AUM. ETH -7.40% Ethereum / USD ETHUSD $ 2,888.19
-$213.73-7.40%
Volume 24.41 b Change -$213.73 Open $2,888.19 Circulating 117.66 m Market Cap 339.81 b
46 min Cryptocurrency Market Tanks on the Same Old China Ban News, But Investors Who Sell Here Will End Up “Bummed” 1 h JPMorgan says Institutional Investors Have Shown A 'Strong Preference' for Ethereum Over Bitcoin Since August 19 h 1Inch Moves to Arbitrum For Faster Throughput And Lower Gas Fees  

Weekly Crypto Asset Flows by Asset

Source: CoinShares

Interestingly, altcoins registered a continued positive sentiment with inflows across the board totaling $27 million. Cardano (ADA) remains the most popular, which had the largest inflows of $10 million, “which may represent investors actively choosing proof of stake coins based on environmental considerations.” ADA 0.44% Cardano / USD ADAUSD $ 2.25
$0.010.44%
Volume 5.7 b Change $0.01 Open $2.25 Circulating 32.04 b Market Cap 72.08 b
1 h IOHK to Launch a dApp Marketplace and Fractional NFTs on Cardano (ADA) Blockchain 4 d JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero

Multi-asset and Polkadot (DOT) investment products also saw inflows of $7 million and $5.5 million, respectively. While BNB didn’t have any inflows, Litecoin (LTC), Stellar (XLM), and Ripple (XRP) did see some at $1.8 million, $1.1 million, and $900k, respectively.

DOT -3.52% Polkadot / USD DOTUSD $ 30.46
-$1.07-3.52%
Volume 3.66 b Change -$1.07 Open $30.46 Circulating 987.58 m Market Cap 30.08 b
2 d Deutsche Boerse Expand Crypto Offering to Include Polkadot (DOT), Solana (SOL), and Tron (TRX) ETNs 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 1 w Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows
BNB -7.24% Binance Coin / USD BNBUSD $ 350.95
-$25.41-7.24%
Volume 2.02 b Change -$25.41 Open $350.95 Circulating 168.14 m Market Cap 59.01 b
23 h Wormhole Launches Solana-Ethereum Bridge to Move NFTs Cross-Chain 4 d Even Ethereum Layer 2 Solutions Are Earning Significantly Higher Fee Revenue than Bitcoin 6 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero
LTC -7.75% Litecoin / USD LTCUSD $ 148.27
-$11.49-7.75%
Volume 2.61 b Change -$11.49 Open $148.27 Circulating 66.75 m Market Cap 9.9 b
1 d Lloyds to Auction off Vehicles from Mad Max FURY Road Film, Crypto Accepted 1 d AMC Theaters CEO Is Considering Adding Payment Support for DOGE By Year-End 6 d Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time
XLM -7.50% Stellar / USD XLMUSD $ 0.28
-$0.02-7.50%
Volume 571.46 m Change -$0.02 Open $0.28 Circulating 23.72 b Market Cap 6.6 b
1 w Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers 1 w Trezor Adds EIP-1559 Support to its Model T Wallet, $1 Billion Worth of ETH Burned 1 mon Coinbase App Downloads Back to Mooning, Partners with Mitsubishi to Onboard its 40 Million Japanese Customers
XRP -6.74% XRP / USD XRPUSD $ 0.93
-$0.06-6.74%
Volume 4.61 b Change -$0.06 Open $0.93 Circulating 46.72 b Market Cap 43.37 b
1 d SEC Scores Minor Victory Against Ripple As Court Rejects Employee Trading History Motion 1 w Solana (SOL) Dominating Institutional Interest, Accounting for Over 86% of the Total Inflows 1 w More than 65% of South Korean Crypto Exchanges to Shut Down Once FSC Deadline Hits

While 21Shares, Grayscale, and 3iQ recorded some inflows, ETC issuance, Purpose, and CoinShares had net outflows.

“Opportunity for Growth”

On Monday, digital asset manager CoinShares also announced a record-setting 2021 with its earnings, including the changes in the value of its digital assets quadrupling in the first quarter to £32.1 million ($45.4 million).

Despite the crypto market reaching as high as $2.6 trillion market cap at one point, these “impressive” numbers “only comprises 35 basis points of global wealth, highlighting the opportunity for growth,” said Jean-Marie Mognetti, CEO of CoinShares.

The company which trades on the Nasdaq also reported a £24.7 million ($34.9 million) year-on-year increase in comprehensive income. Its assets under management also grew about 10-fold to £3.4 billion ($4.8 billion).

Compared with a net income of £80 million ($113 million) the prior year, the company reported a first-quarter loss of £1.77 billion ($2.5 billion).

CoinShares also announced that it intends to launch a business segment for the consumer finance market to broaden its client base beyond institutional investors.

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