Digital-Asset Funds Reach $50B Despite Outflows

Despite experiencing outflows for the fifth straight week, assets under management in digital funds hit their highest level since mid-May.

AccessTimeIconAug 9, 2021 at 5:18 p.m. UTC
Updated Sep 14, 2021 at 1:37 p.m. UTC
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.
Consensus 2023 Logo
Join the most important conversation in crypto and Web3 taking place in Austin, Texas, April 26-28.

Digital-asset investment products saw their fifth straight week of outflows in the week ended on Friday, although the magnitude of the outflows was much less than it was in May and June, according to a report Monday by CoinShares.

Net outflows across all digital-asset funds totaled $26 million last week. But following recent gains in the prices of bitcoin, ether and other cryptocurrencies, total investment product of assets under management (AUM) is now back at $50 billion, the highest level since mid-May. 

CoinDesk - Unknown

The market share for ether, the native cryptocurrency of the Ethereum blockchain and the second-biggest overall after bitcoin by market cap, is rising rapidly and now represents 26% of all digital investment products, compared with just 11% at the beginning of the year.

The price of ether has risen sharply recently, gaining ground in the days leading up to the network’s London hard fork that occurred last Thursday. Ether has risen roughly 16% over the last week, and was trading 4% higher on Monday at about $3,150 at press time.

CoinDesk - Unknown

Although bitcoin has also seen positive price movements in the last few weeks, the cryptocurrency continued to bear the brunt of the outflows, totaling $33 million last week. Ether saw minor inflows totaling $2.8 million last week; ether has not seen the same level of outflows over the last few months as bitcoin has. 

The report also noted that the number of funds/investment products listed has accelerated recently, with a record of 37 launched so far this year, compared with a previous high of 30 launches in 2018.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.