TL;DR
- Market Outflows Amid Concerns: Last week, digital assets investment products saw a significant outflow of $528 million—the first weekly decline in four weeks. Investors reacted to fears of a US recession and broader market sell-offs.
- Trading Volumes and Regional Trends: Trading volumes in exchange-traded products (ETPs) reached $14.8 billion, constituting a below-average 25% market share. The lion’s share of outflows was US-centric, totaling $531 million.
- Bitcoin and Ethereum Dynamics: Bitcoin faced heavy outflows, shedding $400 million—the first drop after five consecutive weeks of inflows. Short-Bitcoin products saw their first significant inflows since June.
Last week, digital assets investment products experienced a significant outflow of $528 million, marking the first weekly decline in four weeks. The catalyst behind this trend appears to be a combination of concerns over a potential US recession and broader market sell-offs across various asset classes, further exacerbated by geopolitical tensions.
Trading Volumes and AUM
Trading volumes in exchange-traded products (ETPs) reached $14.8 billion, constituting a below-average 25% market share. Total ETP assets under management (AUM) followed suit, declining by $10 billion due to recent price corrections.
Digital Assets Regional Outflows
The lion’s share of outflows was concentrated in the US, totaling $531 million. Meanwhile, Germany and Hong Kong experienced outflows of $12 million and $27 million, respectively. In contrast, Canada and Switzerland capitalized on market weakness, attracting inflows of $17 million and $28 million, respectively.
Bitcoin and Ethereum Trends
Bitcoin faced heavy outflows, shedding $400 million—the first price drop after five consecutive weeks of inflows. Conversely, short-Bitcoin products saw their first significant inflows since June, amounting to $1.8 million.
Ethereum also witnessed outflows, totaling $146 million. Since the launch of US Ethereum ETFs, net outflows have reached $430 million. However, this figure masks positive inflows of $430 million into newly launched US ETFs, offset by $603 million of outflows from the Grayscale Ethereum Trust. Minor outflows were also observed in European ETPs.
Blockchain Equities
Blockchain-related equities continued to experience outflows, with an additional $18 million withdrawn last week. This trend aligns with broader outflows seen in tech-related ETFs.
In summary, the recent outflows from digital asset investment products reflect investor reactions to recession fears, geopolitical uncertainties, and broader market liquidations.
While the majority of outflows were US-centric, other regions also responded strategically to market weakness. Bitcoin and Ethereum exhibited diverging trends, emphasizing the impact of market corrections on specific assets.
