Crypto funds see first week of inflows, ETH witnessed the biggest blow

abdelaziz Fathi

CoinShares’ survey of digital asset investment products showed the first week of inflows, totalling $14 million last week, which reverses a five-week long run of outflows.

The asset manager writes that the renewed inflows suggest the recent headwinds for digital assets, such as the significant price weakness, were seen as buying opportunities for investors. However, crypto investment products remain in red on a YTD basis.

Total assets under management (AuM) are now $51 billion, the lowest since early August 2021, which comes in line with the bearish trend in the broader cryptocurrency market. The figure is down by 41% from the $86 billion peak set back in November 2021. Bitcoin’s value has dropped by more than 50% over the same period.

Bitcoin saw inflows totalling $14 million last week, but the primary cryptocurrency suffered outflows of $317 million over the last five weeks, representing 1% of AuM.

Breaking down the latest statistics, Coinshares said outsized outflows were seen in Ethereum investment products. The second largest cryptocurrency in terms of market capitalisation witnessed the biggest blow, with an outflow of $16 million last week.

Ethereum’s market share has suffered in recent months due to Bitcoin’s dominance, and the recent combination of price drop and outflow has seen their AUM fall to $12.6 billion from a record $20 billion. As a result, Ethereum now represents 24% of the capital locked in crypto investment products.

“The current 7 week run of outflows now total $245 million, or 2% of AuM, highlighting much of the recent bearishness amongst investors has been focussed on Ethereum rather than Bitcoin,” CoinShares said in a note.

While the major cryptocurrencies suffered a blow, other altcoins such as Cardano, Polkadot and Solana softened the impact seeing in flows totaling $1.5 million, $1.5 million and $1.4 million respectively. However, London-based asset manager noted that the trend was diminishing following record weekly outflow in mid-January.

Digital asset investment products recorded a huge outflow of funds in the first month of the year as the broader cryptocurrency market performed poorly.

Cryptocurrency funds and products had amassed inflows of $9.3 billion in 2021, significantly greater than the $6.8 billion seen in 2020, or up 36 percent year-over-year.

Read this next

Institutional FX

FXSpotStream volumes hit 14-month high in November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2023, which moved higher on a monthly basis.

Digital Assets

Circle denies ties with Palestinian groups, TRON founder

Stablecoin issuer Circle has denied allegations that it facilitates funding for terrorist organizations.

Retail FX

CySEC hits operator of Titanedge, TradeEU with €90,000 fine

The Cyprus Securities and Exchange Commission (CySEC) announced that it has imposed a fine of €90,000 on Titanedge Securities Ltd due to shortcomings in their regulatory obligations.

Institutional FX

Cboe FX volumes retreats slightly in November 2023

Cboe’s institutional spot FX platform today announced its trading volume for the month ending November 2023, which took a step back after a strong rebound in October.

Institutional FX

Alpha Group seals Cobase majority acquisition

Foreign exchange service provider Alpha Group International plc (AIM: ALPH) has finalized its acquisition of Financial Transaction Services, operating as Cobase.

Digital Assets

TMNG Tokens Successfully Listed on MEXC Crypto Exchange

TMN Global proudly announces the successful listing of its native TMNG token on the MEXC crypto exchange, effective December 1st, 2023. This strategic partnership marks a significant milestone for TMN Global in the crypto space.

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”

Digital Assets

FINMA-regulated crypto bank SEBA Bank rebrands to AMINA

“As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.”

<