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 -0.27% Bitcoin / USD BTCUSD $ 42,079.86
-$113.62-0.27%
Volume 16.75 b Change -$113.62 Open $42,079.86 Circulating 18.94 m Market Cap 796.79 b
2 w SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 2 w Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum

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 0.39% Ethereum / USD ETHUSD $ 3,140.68
$12.250.39%
Volume 8.65 b Change $12.25 Open $3,140.68 Circulating 119.24 m Market Cap 374.49 b
2 w Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 2 w A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 2 w The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022

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 -5.83% Cardano / USD ADAUSD $ 1.35
-$0.08-5.83%
Volume 1.57 b Change -$0.08 Open $1.35 Circulating 33.54 b Market Cap 45.18 b
3 w Bitcoin Is Back Above $51k and Ether $4,100 as The Cryptocurrency Market Goes Green 4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon Solana (SOL) Bucks the Trend, Along With Tron (TRX), by Recording Highest Inflows After Bitcoin (BTC): Report

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 0.31% Polkadot / USD DOTUSD $ 24.50
$0.080.31%
Volume 666.48 m Change $0.08 Open $24.50 Circulating 987.58 m Market Cap 24.19 b
4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows
BNB -0.31% BNB / USD BNBUSD $ 462.76
-$1.43-0.31%
Volume 1.61 b Change -$1.43 Open $462.76 Circulating 165.12 m Market Cap 76.41 b
3 w SEC Rejects Another Spot Bitcoin ETF, Binance Announces New System to Remove BNB from Circulation 4 w BitMEX Launches BMEX Token for Active Users, US Not Eligible for Airdrop 4 w Crypto Outliers: Terra (LUNA) Amasses $16.9 Bln & Surpass BSC, Avalanche (AVAX) Aims for 1 Million Daily Transactions
LTC 0.79% Litecoin / USD LTCUSD $ 137.78
$1.090.79%
Volume 578.88 m Change $1.09 Open $137.78 Circulating 69.46 m Market Cap 9.57 b
4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card
XLM -1.15% Stellar / USD XLMUSD $ 0.25
$0.00-1.15%
Volume 214.94 m Change $0.00 Open $0.25 Circulating 24.79 b Market Cap 6.09 b
2 mon Grayscale Adds Avalanche (AVAX) and Terra (LUNA) to its Investment Product Consideration List 3 mon Circle’s Stablecoin USDC Launches on Hedera Hashgraph's Network 3 mon Robinhood Cites Regulatory Actions or Policies Towards Crypto as Business Risk in Filing
XRP 0.43% XRP / USD XRPUSD $ 0.74
$0.000.43%
Volume 1.01 b Change $0.00 Open $0.74 Circulating 47.66 b Market Cap 35.41 b
4 w Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows 1 mon SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH 1 mon Ledger Announces Integration with FTX and Coinbase, Launching Crypto Life Debit Card

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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