Digital asset funds experience biggest weekly outflows on record

Digital asset investment products experienced outflows of $255 million last week, the largest dollar-figure outflows on record, according to asset manager CoinShares.

For the fifth consecutive week, digital asset funds saw net outflows, with the figure accounting for 1% of total assets under management (AUM).

“Regionally, the negative sentiment was broad, with negative sentiment seen in both North America and Europe,” CoinShares Head of Research James Butterfill wrote on Medium.

The outflows are the largest on record in dollar terms. However, it was not the record when expressed as a percentage of the total AUM, which occurred in May 2019 after $51 million of outflows were seen. “It highlights just how much total AUM has risen since May 2019,” Butterfill noted, adding that AUM has fallen by 10% over the week, back to levels seen at the beginning of the year.

“The outflows have also wiped out all the inflows seen this year, with outflows now standing at $82 million year-to-date,” he said.

3iQ experienced the largest outflows, with $219.4 million leaving funds throughout the week. BlackRock’s ProShares experienced net inflows of $10.7 million. 

Bitcoin saw the largest outflows during the week, totaling $244 million. Short-bitcoin products experienced outflows of $1.2 million. Bitcoin products accounted for over 96% of the outflows last week. 

Ethereum products also experienced outflows totaling $11 million. Flows year-to-date have turned negative, with $3 million leaving ether products.

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