Investors Took Profits on BTC & ETH In the Recent Price Surge, But Invested in Multi-Asset Products
Since mid-May, outflows had totaled $29.5 million, representing 1% of AUM, much lower than the 2018 bear market, when outflows totaled 5% of AUM and occurred over a shorter period of 9 weeks rather than the current 12 weeks.
The rough start of this week saw Bitcoin falling to about $37,935, and Ether went down to $2,440 while the total crypto market cap is back at $1.62 trillion.
Last week, however, was a good one for cryptocurrency prices as Bitcoin went to $42,500 for the first time since May, and Ether went to nearly $2,700.
Digital asset products saw outflows for the fourth consecutive week totaling $19.5 million, down from $28 million in the previous week.
This suggests that “investors were using recent strength in prices to take profits,” per CoinShares report.
Since the outflows began in mid-May prompted by negative price action, outflows have totaled $29.5 million, representing 1% of assets under management (AUM). During the 2018 price rout, however, outflows were far greater.
In the 2018 bear market, the outflows totaled 5% of AUM, which occurred over a shorter period of 9 weeks rather than the current 12 weeks, as per the report.
Bucking the Trend
The majority of these outflows were yet again limited to Bitcoin, which saw $213 million flowing out of the products. With the 4th consecutive week of outflow, Bitcoin has basically borne the brunt of these outflows, although inflows year-to-date remain high at $4.113 billion.
But they have surely come off a bit from their peak of $4.7 billion seen in early May.
Ethereum saw outflows of $9.5 million for the second week in a row, up from $7.3 billion in the previous week. But unlike Bitcoin’s outflows in 10 out of the last 12 weeks, investors have been more forgiving with Ethereum as it only had 6 weeks of outflows during this period.
Interestingly, it is yet again multi-assets products bucking the trend.
Yet another week of inflows resulted in bringing in $7.5 million, up from $3.1 million the previous week. It is also the only set of investment products that recorded inflows every week this year.
Compared to Bitcoin’s total AUM of just over $31.6 billion and Ether’s almost $10.64 billion, multi-asset investment products currently stand at about $2.4 billion.
XRP -14.08% XRP / USD XRPUSD $ 0.92
-$0.13-14.08% Volume 5.71 b Change -$0.13 Open $0.92 Circulating 46.62 b Market Cap 42.88 b 6 d 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 1 w Southeast Asia’s Largest Bank (DBS) Sees Increasing Crypto Demand from Corporate Investors and Wealthy Family Funds DOT -16.60% Polkadot / USD DOTUSD $ 28.61
-$4.75-16.60% Volume 3.83 b Change -$4.75 Open $28.61 Circulating 987.58 m Market Cap 28.25 b 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 6 d 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 BCH -11.66% Bitcoin Cash / USD BCHUSD $ 544.44
-$63.48-11.66% Volume 6.28 b Change -$63.48 Open $544.44 Circulating 18.85 m Market Cap 10.26 b 3 d Interactive Brokers Founder Already Red Pilled, Has Been “Itching” to Offer Crypto Trading for a Long Time 3 d Visa’s Head of Crypto Inquires About Solana (SOL), PayPal Officially Enables Crypto Trading for UK Customers 4 d AMC Entertainment to Accept Bitcoin, Ether, and other Cryptocurrencies as Payment ADA -10.20% Cardano / USD ADAUSD $ 2.08
-$0.21-10.20% Volume 5.79 b Change -$0.21 Open $2.08 Circulating 32.03 b Market Cap 66.58 b 6 h JPMorgan says Ether Is Overvalued at Current Prices and DeFi’s Institutional Adoption Is Above 60% 3 d It Isn’t Layer 1 or Layer 2, It’s Time for LayerZero 6 d Polygon to Integrate EY’s Blockchain Solutions Into Its Ecosystem
The trading volume of these investment products volumes rose 173% compared to the previous week when it was at a $1.7 billion low, which was also just 22% of the high in volumes seen in May.
When it comes to asset managers, the largest one, Grayscale, finally sees some inflows along with ETC Issuance, 21Shares, and Bitwise but extremely low at $8.2 million, $31.2 million, $7.1 million, and $0.3 million, respectively, while every other fund had outflows with CoinShares having the biggest one of $49.6 million.