European Digital Asset Manager CoinShares Reports Another Quiet Week with Minimal Net Inflows of $2.9M

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 Monday (July 19) that for the week ending July 19, 2021, the “summer doldrums are here, but in-line with seasonal expectations.”

Digital asset investment products saw “another quiet week with minimal net inflows totaling $2.9m last week,” the CoinShares team writes in their latest funds flows report.

After several weeks of inflows into Bitcoin, the CoinShares team reports that they’ve seen new seen outflows for the past 2 weeks, with outflows last week “totaling US$10.4m.” These outflows are “minimal relative to the significant outflows witnessed in May and June this year,” the European digital asset manager confirmed.

They also mentioned:

“We believe the timing of some investment product launches, where investors gained market access for the first time, has led to recent profit-taking rounds, this is evident in the mixed nature of inflows and outflows across different providers.”

The report from CoinShares further revealed that Ethereum saw its third straight week of inflows, with last week’s inflows “totaling US$11.7m.” This brings year to date inflows “close to the US$1bn mark,” the firm noted.

The report added:

“For the rest of the altcoins it was a very quiet week, Ripple, Polkadot, Multi-asset, Cardano and Stellar all had inflows but were less than US$0.5m each. Volumes in Bitcoin fell to just 38% of the year-to-date average, totaling US$3.9bn per day last week. We do not believe this represents something ominous in the market as we saw similar seasonal dips in volumes during the summer months in recent years.”

As covered last week, the CoinShares team has noted that for the week ending July 12, 2021, it was a fairly quiet period and relatively slow start to the second half of this year.

Digital asset investment products “saw minor outflows totaling US$4m last week in what was the quietest trading week since October 2020,” the CoinShares team noted (for week ending July 12).

They added that minor outflows were “seen in Bitcoin totaling US$7m last week while trading volumes in investment products totaled just US$1.58bn for the whole week, the lowest since October 2020” (for week ending July 12).

Butterfill further noted (last week):

“In recent weeks there has been a regional divide in Bitcoin inflows with North American providers seeing consistent inflows while their European counterparts have continued to see outflows, suggesting a geographic divergence in sentiment at present.”

The CoinShares team added that Ethereum saw “very minor inflows totaling US$0.8m while Binance and Cardano saw inflows of US$0.4m and US$0.6m respectively” (for the week ending July 12).

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