London based Digital Asset Manager CoinShares Reports Largest Bitcoin Outflows on Record of Over $98M

James Butterfill, Investment Strategist at London-based CoinShares, a digital asset manager focused on expanding access to the cryptocurrency ecosystem while serving as a “trusted partner” for its clients, notes in a blog post published on Tuesday (May 18) that for the week ending 17 May 2021, Bitcoin (BTC) saw the largest outflows on record totaling $98 million last week.

As mentioned in the update from CoinShares:

“Digital asset investment products saw net outflows of $50 million last week, the first outflows since October 2020 and the largest since May 2019. Historical data implies that outflows of this nature have not arked pivotal points in sentiment change for digital assets.”

The report added:

“The outflows were solely from Bitcoin investment products which totaled $98 million or 0.2% of total assets under management. While small, this marks the largest outflow we have recorded, with the second largest at $19 million in May 2019.”

The CoinShares team further noted that all their digital asset investment products “continued to see inflows which totaled $48 million last week.” The asset manager also mentioned that the data “implies that investors have been diversifying out of Bitcoin and into altcoin investment products.”

CoinShares further revealed Ethereum continued to see significant inflows totaling $27 million this past week. Digital asset investment products saw Ethereum trading volumes “being the largest ever, trading a total of $4.1 billion for the week,” the report added.

The update also noted:

“The month of May marking the first time ever that there has been more investment product trading volumes in Ethereum relative to Bitcoin which saw trading volumes of US$3.1bn last week. We also saw inflows into other digital assets, the most popular being Cardano and Polkadot with inflows of US$6m and US$3.3m respectively.”

You can check out the full report from CoinShares here.

As reported, CoinShares had noted in an update on Tuesday (May 4, 2021) that digital asset investment products saw inflows of $489 million during the week from April 26 to April 30.

As confirmed by the company, this figure had marked the largest inflow since February 2021. The high inflows had “concealed varied flows amongt providers, with many seeing outflows in Europe while their North American peers saw strong inflows.”

Butterfill added (earlier this month):

“The varied inflows are primarily Bitcoin focused, where we believe some investors are beginning to take more optimistic positions after having range traded since February, while others have capitulated and taken profits.”

He also noted (earlier this month):

“Looking at individual digital assets, the greatest inflows were into Bitcoin with US$442m. The positive sentiment continued in Ethereum with inflows of US$30m, bringing total investment products under management to a record $13.9 billion.”

He added that XRP, Polkadot (DOT), Binance and Cardano (ADA) products all “saw minor inflows while multi-asset investment products saw inflows of $9.2 million last week” (by the end of April 2021).

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