Forex in this article
• Temporary outflows from crypto funds can be viewed positively
• Latest access to investment products for digital assets again
• CoinShares sees neutral net sentiment among investors
Digital asset investment products see outflows in early October
As James Butterfill, CoinShares’ head of research, wrote on the company’s blog on Oct. 10, digital asset investment products saw a total of $5 million in net outflows in the week preceding his report. In terms of individual countries, Germany recorded the largest inflows totaling $2.9 million, while Sweden and Canada recorded losses of $6.4 million and $4.4 million, respectively.
Bitcoin saw inflows totaling about $12 million, while Ethereum saw outflows totaling $2.2 million, which Butterfill said underscores continued investor caution following the September merger. Meanwhile, very little activity has been seen in altcoins.
Nevertheless, a positive signal for the crypto market
However, the majority of digital asset investment product outflows, Butterfill wrote, have come from short bitcoin investment products, suggesting sentiment remains positive. Short bitcoin investment products saw outflows of around $15 million that week, representing 10 percent of total assets under management (AuM) and doubling from previous weeks. According to Butterfill, this suggests bearish sentiment is fading.
Inflow again the following week
During the following week, James Butterfill wrote in his “Digital Asset Fund Flows Weekly Report” that inflows into digital asset investment products totaled around $12 million. Total assets under management (AuM) were $25 billion, just above the recent low of $24 billion. Butterfill said investor apathy continued, with inflows or outflows over the past five weeks representing less than 0.05 percent of total assets under management, compared with the annual average of 0.16 percent.
Regionally, the United States has seen the largest total inflows of about $20 million during this period, while Sweden and Switzerland have recorded total outflows of $5.2 million and $4.5 million, respectively, according to Butterfill.
Currently neutral net investor sentiment
Looking at individual cryptocurrencies, Bitcoin has seen inflows totaling $8.8 million. While not a particularly large increase, Butterfill said it represented the fifth consecutive week of inflows. Meanwhile, short bitcoin investment products also saw inflows totaling $6.7 million this week, as opposed to the previous week. According to Butterfill, this currently points to a net neutral sentiment among investors.
Ethereum, on the other hand, saw smaller outflows totaling $3.9 million over the same period. Altcoins saw even less activity, with outflows from Avalanche totaling $0.6 million and inflows to Multi-Asset and Binance totaling $0.4 million and $0.3 million, respectively.
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