Early Turn in Sentiment Seen as Crypto Asset Investment Products Record Inflows

Outflows remain focused on Bitcoin but are still minimal compared to those seen in early 2018. Ethereum is the altcoins of choice, while XRP and Cardano are also gaining traction.


Yet another week of outflows was recorded by digital asset investment products.

As of the week ending June 7, the products saw outflows of $94 million, with only one product provider seeing significant outlaws while the rest recorded inflows, as per the Digital Asset Fund Flows Weekly Report of CoinShares.

This one product provider was 3iQ that had an outflow of $187.7 million; however, the leading crypto asset manager Grayscale Investments and Bitwise had zero flows recorded last week.

In comparison, CoinShares, 21 Shares, ETC Issuance, Purpose, and other providers had relatively smaller amounts of inflows of $6.6 million, $18.7 million, $33 million, $9.8 million, and $25.4 million, respectively. The report noted,

“Despite the net outflows, we believe it implies an early turn in sentiment since May, where most product providers were seeing net outflows and sentiment was broadly negative.”

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The negative sentiment, like all the previous times, was focused solely on Bitcoin, which had outflows totaling $141 million, marking the largest single week of outflows on record. The outflows now represent 8.3% of the net inflows seen this year. Caution was also seen in Bitcoins’ weekly volume that fell by 62%.

According to the report, the outflows remain minimal on relative terms to the outflows seen in early 2018. CoinShares noted,

“As Bitcoin is increasingly accepted as a hedge against currency debasement and financial repression, there is more demand than ever from investors to understand the role it should play in their portfolio.”

However, Ethereum continues to be the altcoins of choice for investors, with inflows totaling $33 million.

When it comes to YDT flows, Ether’s has now surpassed $1 billion versus nearly $4.25 billion recorded by Bitcoin. As for the total assets under management (AUM), Ethereum investment products have $12.32 billion, and Bitcoin has almost $30.3 billion.

XRP meanwhile saw its largest inflow since April totaling $7 mln, while both Cardano and multi-asset products saw inflows of $4.5m and $2.7m, respectively.

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