Research Summary
The report discusses the recent trends in digital asset investment products. The report highlights that these products have seen outflows totaling US$62m, marking the 7th consecutive week of outflows, which now total US$329m. This represents 1% of total assets under management (AuM). The primary focus has been Tron, the smart contracting platform, which saw outflows totaling US$51m last week. The report suggests that these outflows are likely due to profit-taking and exiting short positions rather than a structural downshift in sentiment for digital assets.
Actionable Insights
- Investors are likely taking profits: The report suggests that the recent outflows from digital asset investment products are likely due to investors taking profits, particularly as prices have risen 56% across investment products year-to-date.
- Tron sees significant outflows: Tron, the smart contracting platform, saw outflows totaling US$51m last week, representing 70% of total AuM. This is believed to be due to a single investment product provider removing seed capital.
- Bitcoin sees minor outflows: Bitcoin saw minor outflows totaling US$2.7m, while short-bitcoin also saw outflows of US$6.3m. The report suggests that investors are exiting short positions rather than implying a structural downshift in sentiment for the asset.
