Digital asset market shrinks as fund outflows reach $200M: CoinShares

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On May 15, European cryptocurrency investment firm CoinShares published its latest “Digital Asset Fund Flows Report,” which revealed that digital asset investment products experienced another week of consecutive outflows, with a total of $54 million exiting the market. This brings “the total outflow to US$200m, representing 0.6% of total assets under management (AuM),” CoinShares reported. 

Weekly crypto asset flows. Source: CoinShares

According to the report, Bitcoin (BTC) funds witnessed outflows of $38 million. Over the past four weeks, total BTC outflows amounted to $160 million, accounting for 80% of all outflows. Furthermore, when combining the outflows from short positions on Bitcoin, the total value of outflows related to this asset alone reached $201 million. These numbers strongly highlight that recent investor activity has been overwhelmingly focused on Bitcoin.

The report also noted that multi-asset investments experienced outflows of $7 million in the past week. However, there was a noteworthy development as inflows were observed across eight different altcoin assets, implying that investors are becoming “more adventurous and selective” in their investment choices. 

Among the altcoins, funds tied to Cardano (ADA), Tron (TRX) and Sandbox (SAND) attracted minor inflows of less than $1 million each. Binance (BNB) was the only altcoin to witness outflows.

Related: Bitcoin offers ‘good signs’ as analysts retain $40K BTC price target

A recent survey conducted by Bloomberg’s Markets Live Pulse indicates that in the event of a theoretical debt default in the United States, Bitcoin could emerge as one of the top three assets alongside gold and United States Treasurys. This suggests that appetite for Bitcoin as a “digital gold” could emerge if investors doubt Washington’s ability to avoid a default in the long run. 

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