Digital asset products hits weekly outflows of $423M, sets new record

By: Dickson Arinze

Digital asset products hits weekly outflows of $423M, sets new record

June 28, 2022 4:49 AM

Investors from Canada represented a huge $487.5 million worth of outflows for crypto investment products, with only $70 million worth of inflows from five other countries to partially offset it.


Digital asset investment products saw record weekly outflows totaling $423 million, with institutional investors from Canada representing nearly all of the havoc.


The latest release of CoinShares’ weekly “Digital Asset Fund Flows” report shows Canadian investors offloaded a whopping $487.5 worth of digital asset products in four days between June 20 to June 24.


The total digital asset outflows for the week were partially offset by $70 million worth of inflows from five other countries, with U.S.-based investors accounting for $41 million of the $70 million inflows which is more than 50%.


Other investors from Germany and Switzerland accounted for inflows totaling $11 million and $10.4 million apiece aside the U.S. Meanwhile, Brazilian  and Australian investors also jumped in with minor inflows of $1.6 million and $1.4 million respectively.


The total outflows equaled $422.8 million, making it the largest weekly shedding by institutional investors since CoinShares began keeping tabs on the matter. Also, the latest reported figures doubled its previous record of $198M shared in january this year.


Speaking of outflows by asset, Solana (SOL) products also saw minor outflows of $100,000, while, investment products linked to Bitcoin (BTC) saw $453 million worth of outflows.


The swift offloading of BTC products last week, saw the year-to-date (YTD) flows almost sliding into the negative, with the figure now standing at just $26.2 million worth of inflows during 2022.


On the other hand, Ethereum (ETH) investment products also defy an 11-week trend of outflows by recording inflows of $10.9 million. However, according to the YTD, Ether products have seen outflows totaling $448.3 million, which shows its the least favoured choice of investment for institutional investors.


ProShares launching the first short Bitcoin exchange-traded fund (ETF) in the U.S. on June 22, is primarily the reason why investment products offering exposure to shorting Bitcoin (BTC) price generated the largest inflow of $15.3 million for the week, CoinShares reported.