Crypto assets outflow reaches a new all-time high, according to data from CoinShares. It was the largest weekly outflow for the year 2023, reaching $255 Million in US Dollars.
Investors in digital asset investment products were experiencing another week of outflows, marking the fifth consecutive week of declines. At the moment, the total outflows amounted to a staggering US$255m. It is also the largest single weekly crypto asset outflow in recordings, equivalent to 1.0% of total assets under management (AuM). Additionally, this negative trend was observed globally, with both North America and Europe reporting negative sentiment.
Interestingly, the US bucked the trend and saw inflows of US$11m, mainly into long-bitcoin positions. This resulted in a 10% drop in AuM, bringing it back to levels seen at the beginning of 2023, and effectively erasing all the inflows recorded so far this year. Bitcoin, being the largest digital asset, was the main focus of the outflows, with investors withdrawing a total of US$244m last week. Short-bitcoin positions also saw outflows, amounting to US$1.2m.
Is This the Worst Crypto Assets Outflow?
According to CoinShares head of research James Butterfill, the answer is no. The latest outflows in digital asset investment products only represent the largest amount in a single week on record. However, they do not constitute the highest percentage of total assets under management (AuM). The record for the highest percentage of outflows was in May 2019 when US$51m outflows represented 1.9% of AuM.
This highlights how much AuM has risen since then, by 816%. Despite this, the recent outflows have still caused a significant drop in AuM. It fell by 10% over the week, reaching levels last seen at the beginning of 2023. Moreover, these outflows have nullified all inflows seen this year, with total year-to-date outflows now standing at US$82m.
Bitcoin and Ethereum’s Performance
Last week, Bitcoin saw the largest outflows of US$244m, while short-bitcoin saw outflows of US$1.2m. However, short-bitcoin remains the investment product with the largest inflows year-to-date of US$49m. Ethereum also experienced outflows of US$11m last week. Its flows for the year have turned negative, though to a lesser extent of US$3m. Other altcoins such as Solana and XRP saw minor inflows of US$0.4m and US$0.3m, respectively.
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