Digital asset fund flows | August 5th 2024

Bitcoin not immune to the broad asset class sell-off, seeing US$528m outflows

• Digital asset investment products saw outflows for the first time in 4 weeks totalling US$528m in what we believe is a reaction to fears of a recession in the US, geopolitical concerns and consequent broader market liquidations across most asset classes.

• Bitcoin saw outflows totalling US$400m, the first following 5 weeks of inflows.

• Ethereum saw outflows totalling US$146m, bringing the net outflows since the ETF launch in the US to US$430m.

Digital asset investment products saw outflows for the first time in 4 weeks totalling US$528m in what we believe is a reaction to fears of a recession in the US, geopolitical concerns and consequent broader market liquidations across most asset classes. Trading volumes totalled US$14.8bn last week in ETPs, representing a lower than average proportion of the total market at 25%. The price correction from Friday’s close saw US$10bn wiped off total ETP AuM.

Regionally, the majority of outflows were US focussed, seeing US$531m outflows, Germany and Hong Kong also saw outflows of US$12m and US$27m respectively. Canada and Switzerland saw the price weakness as an opportunity to add with inflows of US$17m and US$28m respectively.

Bitcoin saw outflows totalling US$400m, the first following 5 weeks of inflows, while short-bitcoin saw the first measurable inflows since June of US$1.8m.

Ethereum saw outflows totalling US$146m, bringing the net outflows since the ETF launch in the US to US$430m. This data masks the positive inflows of US$430m last week from the newly launched US ETFs, but offset by US$603m outflows from the incumbent Grayscale trust. Minor outflows were also seeing in European ETPs.

Blockchain equities continued to see outflows, with lasty week seeing a further US$18m, in-line with outflows from broad tech-related ETFs.

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