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 24) that for the week ending 24 May 2021, digital asset outflows “continue, [and] evidence suggests a switch to Proof of Stake coins.”
Butterfill also mentioned in CoinShares weekly report that digital asset investment products experienced net outflows for the second straight week totaling $97 million, which is notably another new record for outflows.
Butterfill added that the outflow “remains low, representing only 0.2% of total assets under management (AuM).” He also mentioned that this is particularly the case “when compared to the net inflows year to date of US$5.5bn, representing 11.8% of AuM.”
The report from CoinShares added that “regardless, it represents a net change in sentiment following increasing regulatory scrutiny and concerns over Bitcoin’s environmental credentials.”
The report also mentioned:
“Last week saw lower outflows for Bitcoin, with outflows of US$111m versus US$115m the previous week (amended following new historical updates). Adding to the outflow was Ethereum which saw minor outflows of US$12.6m following a long run of record-breaking inflows totaling US$924m year to date (8% of AuM).”
The report further noted:
“All other altcoins (typically coins other than Bitcoin) saw continued positive sentiment with inflows across the board totalling US$27m. Cardano saw the largest inflows ofUS$10m, which may represent investors actively choosing proof of stake coins based on environmental considerations. Multi-asset and Polkadot investment products also saw inflows of US$7m and US$5.5m respectively.”
The report added that Bitcoin volumes on “trusted” exchanges “reached a record US$155bn last week.”
As covered last week, CoinShares had reported the largest Bitcoin outflows on record of over $98 million.
CoinShares’ update from the previous week had also revealed:
“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.”