Volume 86: Digital Asset Fund Flows Weekly Report

Record US$423m outflows last week while short-Bitcoin saw inflows of US$15m

• Digital asset investment products saw outflows totalling US$423m last week, the largest since records began by a wide margin.
• The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and likely responsible for Bitcoin’s decline to US$17,760 that weekend.
• The outflows were solely focussed on Bitcoin, which saw net outflows for the week totalling US$453m.
• Short-Bitcoin saw inflows totalling US$15m due to the launch of the first US-based short investment product last week.

Digital asset investment products saw outflows totalling US$423m last week, the largest since records began by a wide margin, with the prior largest also this year in January at US$198m. This is not the largest relative to total assets under management (AuM), this record occurred during the bear market in February 2018 where outflows representing 1.6% of AuM were witnessed, while the outflows last week were the 3rd largest on record, representing 1.2% of AuM.

Regionally, the outflows were almost solely from Canadian exchanges, and one specific provider. The outflows occurred on 17th June but were reflected in last week’s figures due to trade reporting lags, and likely responsible for Bitcoin’s decline to US$17,760 that weekend. Stripping out the US$493m outflows reveals that other providers saw aggregate inflows totalling US$70m, highlighting highly polarised sentiment amongst digital asset investors.

The outflows were solely focussed on Bitcoin, which saw net outflows for the week totalling US$453m, erasing almost all inflows year-to-date and leaving total Bitcoin AuM at US$24.5bn, the lowest point since the beginning of 2021.

Short-Bitcoin saw inflows totalling US$15m due to the launch of the first US-based short investment product last week, while older short-investment products saw outflows.

Ethereum saw inflows totalling US$11m, the first following 11 consecutive weeks of outflows.

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