Negative Sentiment Continues to “Plague” Digital Assets, but Multi-Asset Is “Bucking the Trend,” CoinShares Reports

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 26) that for the week ending July 26, 2021 that the negative sentiment continues to “plague” digital assets, but multi-asset is “bucking the trend.”

Butterfill also mentioned that digital asset investment products “saw outflows for the third consecutive week with outflows totaling US$28m.” Last week’s outflows indicate that negative sentiment still “pervades the asset class despite more recent constructive comments from key industry players.”

Bitcoin saw “the majority of the outflows which totaled US$24m,” which is reportedly the largest outflows since mid­ June 2021. Net flows YTD “remain positive with inflows of US$4.1bn, but they are off their peak of US$4.7bn seen in early May,” the CoinShares team confirmed in their weekly report.

They pointed out that Ethereum also “saw outflows totaling US$7.3m although flows were very mixed amongst providers with no discernible regional trend.” The report added that multi-asset investment products “continue to buck the trend with another week of inflows totaling US$3.1m.” Multi-asset is “the only set of investment products where there have been inflows every week this year representing 18% of assets under management,” the report added.

Investment product trading turnover “remains low at US$1.7bn for last week, this represents just 22% of the high in volumes seen in May,” the CoinShares team revealed while adding that this decline is “mirrored in overall Bitcoin volumes which were 32% over the same period in what we believe is due to seasonal effects.”

As covered last week, Coinshares products had seen “another quiet week with minimal net inflows totaling $2.9m last week.”

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

They also mentioned in their report from July 19, 2021:

“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.”

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