Assets Under Management AUM

Crypto assets under management at lowest since July 2021

Crypto investment products saw outflows for a second straight week, the bulk of which came from bitcoin funds, according to data from digital asset manager CoinShares.

CoinShares

The data highlights cautious investor sentiment on the cryptocurrency sector as the downtrend continues, he says.

Crypto outflows reached $141 million in the week ended May 20, with bitcoin reaching $154 million in outflows. However, year-to-date and month-to-date flows remain net positive at $307 million and $187 million respectively.

Other crypto and digital investment products such as Ripple, Polkadot, and Solana saw minor inflows for the week, bringing in $0.7 million, $1.0 million, and $1.0 million, respectively. The same trend continued with releases coming mainly from North American providers, with releases accounting for $154 million while flows in Europe were broadly flat, amounting to $12.4 million.

Overall, total assets under management (AuM) now stand at $38 billion, their lowest level since July 2021.

“Digital asset investment products saw outflows totaling $141 million in the past week. Ongoing volatility has led investors to be fickle, with some seeing an opportunity as overall sentiment is mostly bearish,” CoinShares said. .

Ether, the token used in the Ethereum blockchain, also saw outflows of nearly $0.3 million last week, its second straight week of outflows, according to the data. Year-to-date, investments in Ether products still show outflows at $234 million, representing 2.7% of assets under management (AUM).

CoinShares revenue growth reversed

Ethereum’s market share has suffered in recent months due to Bitcoin’s dominance, and the recent combination of falling prices and outflows has seen their AUM drop to $8.6 billion from a record high of $20 billion. of dollars. As a result, Ethereum now accounts for 22.7% of the capital locked in crypto investment products.

CoinShares grabbed headlines earlier this month after reporting a decline in the first quarter from the previous quarter, weighed down by a decline in institutional investor interest in cryptocurrency trading.

Europe’s largest crypto asset manager said combined revenue, gains and other income was £27.96 million, down from £39.91 million in the first quarter of 2021 Adjusted EBITDA also halved from £34.2m to £18.7m in the three months to March 2021.

In the fourth quarter, CoinShares reported its highest quarterly earnings after surging crypto markets led to significant growth in its assets under management. However, due to lower demand for digital asset investment products, ETP assets under management (AUM) fell to £3.07 billion from £3.4 billion on 31 March 2022.

As the market environment has changed over the past three months, with cryptocurrencies under pressure, the institution’s favorite platform has struggled to gain investor confidence.