CoinShare’s weekly ‘Digital Asset Fund Flows’ report of May 23 revealed another week of institutional capital outflows from the crypto world. The withdrawals of $141 million have reduced the overall Asset Under Management (AUM) to only $38 billion. As per the report, the current AUM is at a record low after July 2021. This AUM amount is less than the amount owned by just one Grayscale fund a few months ago.
What is weekly ‘Digital Asset Fund Flows’ and what does it cover?
This weekly article from Coinshare provides a concise summary of investment inflows and withdrawals in prominent ETPs, mutual funds, and OTC trusts with reference to bitcoin, ether, and other digital assets. The report helps investors understand the drivers of recent price movements and investor sentiment in the world of virtual assets.
What is AUM?
The entire market value of the investments that a person or corporation manages on behalf of customers is referred to as assets under management (AUM). Assets under management definitions and calculations differ from firm to company.
Other Highlights of Digital Asset Fund Flows report released on May 23
- Bitcoin-based funds saw the most withdrawals, with $154 million of outflow. BTC has dropped below $28,000 on two occasions in the past week and appears to be going there again today after a 3.2% loss.
- Blockchain equity investment recorded an outflow totalling $20 million on the same line as the current market trend.
- The overall crypto world sentiment was negative, with only a few individuals looking for opportunities in the low asset values.
- However, the report also highlights that multi-asset crypto investment saw an inflow of $ 9.7 million in the past week. This may be due to that those investors see multi-asset crypto investments as safer in comparison to single crypto investments.
- The report also finds out that altcoins like Cardano, Polkadot saw a net inflow of $1 million each.
- The report pointed out that the continuous volatility has resulted in unreliability among investors, with some seeing this as an opportunity while the overall attitude is pessimistic.
- Ethereum funds remained almost constant for the week, but multi-asset funds defied the trend with a $9.6 million inflow. For individual cryptocurrency items, there was minimal change in either way.
Last week, institutional bears were concentrated in the Americas, while European investors were somewhat more positive. According to the study, year-to-date inflows account for only 5.3% of total AUM, or $185 million.
Ethereum-to-Bitcoin price ratio in falling crypto market
On May 23, institutional-grade cryptocurrency market data source Kaiko stated that the Ethereum-to-Bitcoin price ratio fell dramatically in May. The data shows a major fall in the risk appetite of investors. The ratio has previously been used as a barometer for investor sentiment and has been regarded as a sign of Bitcoin’s dominance relative to other altcoin marketplaces.
