Last week, digital asset investment products posted outflows of $142 million, the first one after 17 weeks of inflows, according to data from CoinShares.
Still, these outflows represented only 0.23% of total assets under management (AUM). From a historical perspective, the latest inflows are small relative to the outflows in early 2018, where week’s outflows represented up to 1.6% of AUM.
For the week ending December 17, the crypto asset products recorded the largest weekly outflow on record after the previous record in early June in 2021, where weekly outflows were $97 million.
While appearing to be alarming, James Butterfill, investment strategist at CoinShares, further noted that these outflows come at a time when outflows have been recorded across all risk assets following the recent US Federal Reserve statement on doubling the pace of tapering and projecting three rate hikes in 2022.
“This trend break very accurately depicts the tax selling, redemption, and bonus clipping flow,” said Zaheer Ebtikar of Deribit Insights. Once this selling abates, we could see the “Santa Rally,” just like in December 2020 when in the first two weeks, the price dropped 10% only to rally 50% in the year-end.
Additionally, these outflows come at a time when yearly inflows are at a record high at $9.5 billion, beating the $6.7 billion inflows in 2020.
Out of these outflows, Bitcoin (BTC) accounted for $89 million, well below the June outflows of $150 million. Ethereum (ETH) meanwhile saw record outflows of $64 million.
BTC 6.79%
Bitcoin / USD
$ 48,863.34
$3,317.82
6.79%
Volume 29.73 b
Change $3,317.82
Open $48,863.34
Circulating 18.91 m
Market Cap 923.85 b
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ETH 5.68%
Ethereum / USD
$ 4,014.10
$228.00
5.68%
Volume 19.71 b
Change $228.00
Open $4,014.10
Circulating 118.83 m
Market Cap 477 b
8 min
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Amidst these outflows, altcoins like Solana (SOL), (DOT), and multi-asset investment products still managed to record inflows of $6.7 million, $2.5 million, and $1.5 million respectively. Cardano (ADA) and XRP also saw some inflows at $0.5 million and $0.3 million respectively.
SOL 5.24%
Solana / USD
$ 179.82
$9.42
5.24%
Volume 2.06 b
Change $9.42
Open $179.82
Circulating 308.34 m
Market Cap 55.44 b
8 min
Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
1 d
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5 d
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DOT 6.78%
Polkadot / USD
$ 25.17
$1.71
6.78%
Volume 1.02 b
Change $1.71
Open $25.17
Circulating 987.58 m
Market Cap 24.86 b
8 min
Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
2 d
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Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows
ADA 4.22%
Cardano / USD
$ 1.26
$0.05
4.22%
Volume 1.26 b
Change $0.05
Open $1.26
Circulating 34.17 b
Market Cap 43.09 b
8 min
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1 w
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1 w
Solana Unaffected by Price Jitters while Bitcoin, Ether, Polkadot, and Cardano Post Outflows
XRP 7.37%
XRP / USD
$ 0.90
$0.07
7.37%
Volume 3.81 b
Change $0.07
Open $0.90
Circulating 47.25 b
Market Cap 42.44 b
8 min
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2 d
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1 w
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While Tron (TRX) and Litecoin (LTC) didn’t see any flows, Binance did have some outflows of $0.8 million.
TRX 4.36%
TRON / USD
$ 0.08
$0.00
4.36%
Volume 1.38 b
Change $0.00
Open $0.08
Circulating 101.87 b
Market Cap 8 b
8 min
Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
3 d
Justin Sun Stepping Down from Tron (TRX) Leadership To Be A Diplomat For Grenada
1 w
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LTC 4.51%
Litecoin / USD
$ 153.88
$6.94
4.51%
Volume 1.31 b
Change $6.94
Open $153.88
Circulating 69.24 m
Market Cap 10.65 b
8 min
Bitcoin and Ether Breaks Trend With Outflows While Altcoins Continue to See Inflows
2 d
SBI Holdings to Launch Japan’s First Crypto Fund; Including BTC, ETH, DOT, LINK, LTC, XRP & BCH
1 w
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Like last week, Purpose Investments launched the first Bitcoin ETF, and then Ether ETF in Canada, recorded the largest inflows while CoinShares, ProShares, ETC Group, and 3iQ all recorded outflows.
Grayscale, the largest digital asset manager, still hasn’t seen any inflows. And as the SEC postponed the decision on the firm’s application to convert its Bitcoin Trust to an ETF in early February, GBTC hit a new low of 21.36%.
GBTC near all-time-low, over 20% discount. pic.twitter.com/TA8ie6JTO4
— unfolded. (@cryptounfolded) December 20, 2021
Still, according to a recent CNBC Millionaire Survey, most millennial millionaires have the bulk of their wealth in crypto and are planning to add more next year.
A whopping 83% of them own crypto, as per the survey which polled those with investable assets of $1 million or more. 53% of these millennial millionaires have at least half of their wealth in crypto.
In comparison, more than three-quarters of Gen X investors do not own any crypto assets, while only 4% of baby boomers hold them.
Despite the ongoing lack of bullish price action in the market, millennial millionaires have no plans to reduce their crypto allocation; rather, 48% of them plan to add to their holdings next year—another 39% plan to maintain their current crypto levels. Only 6% of millennial millionaires plan to reduce their crypto investments over the next 12 months.
“I’m not sure the wealth management industry has recognized that they really need to think of these as completely different generations,” said George Walper, president of Spectrem Group, which conducted the survey. “Most firms were hoping to ignore it. But millennial millionaires are not going to just ‘grow out’ of crypto.”
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