Tag: Coinshares

Largest Weekly Inflows in Digital Assets in Over a Year, Led by Bitcoin

by Blockchain News

In a significant shift of sentiment, digital asset investment products experienced their largest single weekly inflows since July 2022, totaling a substantial $199 million, according to CoinShares report. This surge effectively corrected almost half of the prior nine consecutive weeks of outflows, signaling renewed investor confidence in the market.

Bitcoin emerged as the primary beneficiary, capturing a staggering $187 million in inflows last week, which accounted for an impressive 94% of the total funds. This surge in Bitcoin investment comes amidst one of the largest price surges in recent times, as the cryptocurrency experienced a remarkable 20% increase over the course of the week.

Conversely, short-bitcoin products continued to face outflows for the ninth consecutive week, with a total of $4.9 million withdrawn.

However, this positive sentiment did not extend to altcoins, as they only witnessed minor inflows. Ethereum, the second-largest cryptocurrency by market capitalization, attracted $7.8 million in inflows. Although this figure represented a mere 0.1% of assets under management (AuM) compared to Bitcoin’s 0.7% inflows, it indicated a relatively lower appetite for Ethereum in the current market.

The positive market shift was primarily attributed to recent announcements made by high-profile exchange-traded product (ETP) issuers. These issuers have filed applications for physically backed exchange-traded funds (ETFs) with the US Securities and Exchange Commission, generating renewed optimism among investors.

The total assets under management (AuM) for digital asset investment products now stand at an impressive $37 billion, reaching their highest point since before the collapse of 3 Arrows Capital.

While Bitcoin experienced significant inflows, outflows persisted for short-bitcoin products. Over the course of the past nine weeks, outflows accounted for 60% of the total AuM, further highlighting the divergence in investor sentiment.

Other altcoins, including XRP and Solana, saw only marginal inflows of $0.24 million and $0.17 million, respectively. However, the improved market sentiment did encourage some investors to explore multi-asset investment ETPs, resulting in $8 million in inflows during the previous week.

Overall, the surge in inflows into digital asset investment products, particularly Bitcoin, suggests a growing confidence among investors, possibly driven by the anticipation of new physically backed ETFs in the US market. While altcoins have yet to witness a substantial boost, the market remains dynamic, and investor preferences may shift as new opportunities emerge.

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Digital Asset Outflows Continue for the Fourth Week, but Selective Investments Show Optimism in the Market: According to CoinShares

by Blockchain News

According to CoinShares’ Twitter, the leading alternative asset manager in Europe specializing in digital assets, digital asset investment products have seen a fourth consecutive week of outflows, totalling $54 million. This has brought the total outflow to $200 million.

These outflows have been widespread across regions, reflecting a negative sentiment among investors that isn’t limited to a few players. Interestingly, a significant portion of these outflows was seen in Germany, amounting to $30 million. In the United States, 84% of the outflows came from investors selling their short positions.

Bitcoin ($BTC) remains the focal point of investor activity, with outflows totalling $38 million. Over the past four weeks, Bitcoin has witnessed an outflow of $160 million, representing 80% of all outflows over this period.

While outflows have been a concern, some investors are showing a daring streak. This week, multi-asset investments saw outflows of $7 million, but there were notable inflows into Cardano (#ADA), Tron (#TRX), and Sandbox (#SAND). This suggests a more adventurous and selective approach by investors in the digital asset space.

Despite the continued outflows from digital asset investment products, it’s important to highlight that they represent only 0.6% of total Assets under Management (AuM). This suggests that while the market is experiencing short-term volatility, the long-term outlook for digital asset investments remains robust. CoinShares continues to set a new standard for institutional excellence in the digital asset industry, even in these uncertain times.

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Institutional investors pull back from crypto amid regulatory crackdown

by Blockchain News

In the aftermath of the regulatory crackdown in the United States, institutional investors may have gotten the jitters on cryptocurrency. As a result, digital asset investment products had the highest weekly outflow of any asset class in 2023.

The institutional cryptocurrency fund management CoinShares said on February 20 that digital asset investment products suffered withdrawals of $32 million last week, the greatest outflow of the year. This was the largest outflow since the beginning of the year.

The outflow follows a massive crackdown on the digital asset industry in the United States, which has targeted everything from staking services to stablecoins to crypto custody as the Securities and Exchange Commission ramps up what industry analysts have dubbed its “war on crypto.” The SEC has targeted everything from staking services to stablecoins to crypto custody as it ramps up what they have dubbed their “war on crypto.”

According to CoinShares analyst James Butterfill, outflows peaked at $62 million halfway through the previous week, but they dropped down by the end of the week as sentiment recovered.

The vast bulk of these withdrawals, or 78%, were made from investment instruments connected to Bitcoin (BTC), while Bitcoin short funds received an infusion of $3.7 million during this time period. The company placed responsibility for the increasing outflows on the heightened scrutiny from regulators.

We think that this is because investors in ETPs have a more pessimistic outlook on recent regulatory pressures in the United States in comparison to investors in the wider market.

Despite this, the general market had a gain of 10% over the time period in question, which was not reflective of the pessimistic outlook expressed by institutional investors. Butterfill said that as a result of this, the total assets under management for institutional products reached $30 million, which is the highest level since August.

However, blockchain equities reversed the trend with inflows that totaled $9.6 million for the week. Ethereum (ETH) and mixed-asset funds also saw withdrawals of capital over the same time period.

In the month of January, institutional investors resumed their practice of investing in cryptocurrency funds, with total inflows of $117 million for the last week of the month, marking a new record for the past six months.

Nevertheless, there has been a withdrawal from funds during the last two weeks, after a period of four weeks in January when there were deposits.

The change in attitude might be attributed to a regulatory enforcement action that occurred on February 9, when the SEC brought charges against Kraken for the staking services it provided. A few days later, it filed a lawsuit against Paxos about the minting of Binance USD (BUSD), and only the week before that, it suggested reforms that would affect cryptocurrency companies that operate as custodians.

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Hedge Funds Battle to Survive After FTX Exchange Collapse

by Blockchain News

Some hedge funds were able to weather the storm and remain solvent despite being adversely affected by the failure of the FTX exchange, while others were forced to make the decision to liquidate their holdings and cease operations as a result of the financial crisis.

CoinShares, an institutional crypto fund manager, underlined the fact that the company remained “financially solid” in its fourth-quarter report for 2022. This was despite the fact that the company had to cope with the FTX crash at the end of the year. The fund also showed its successes, including its graduation to the principal market of Nasdaq Stockholm and its high levels of inflow into CoinShares physical exchange traded goods.

Following the filing of its bankruptcy petition, CoinShares said that assets worth more than $31 million were frozen on the FTX exchange. The management of the fund does not know for certain if they will ever be able to retrieve the monies or how much of the assets can be retrieved at this time.

During the course of the quarter, the company came to the conclusion that it would no longer maintain its CoinShares consumer platform. The company explained its decision in writing, stating that “Market circumstances gave birth to a scenario that did not enable us, with our present financial structure, to sustain a consumer activity that needed large upfront expenditure in marketing.”

The Chief Executive Officer of CoinShares, Jean-Marie Mognetti, said in a letter to investors that the failure of FTX “had a substantial effect” on the company’s ability to implement its algorithmic trading platform, HAL, in European markets. In spite of this, Mognetti also noted that the company will continue into 2023 with defined objectives, such as concentrating on increasing its digital asset management business and the institutional products it provides.

Galois Capital, a hedge fund, did not have the same level of success as CoinShares when it came to weathering the FTX storm. The fund announced to its investors on February 20 that it would be winding down its operations due to the losses that it sustained as a result of the collapse of FTX. The company made the executive decision to return the remainder of its cash to its investors and to sell its claims to purchasers who were better equipped to pursue bankruptcy claims.

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CoinShares Launches Twitter Bot for NFT Investors

by Blockchain News

Crypto asset manager CoinShares has launched a helpful Twitter bot for NFT investors.

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On Thursday, CoinShares announced the launch of a Twitter bot called the ‘CoinSharesNFTAI.’ According to the functionality of the Twitter bot, CoinSharesNFTAI would help NFT investors predict a ‘fair price’ for any NFT listed on Opensea.

The Twitter bot would assist NFT investors on Twitter to filter the uncertainties in the NFT space and know how much an NFT might be worth with just a single tweet. To activate the bot, users would have to make a tweet with an Opensea link of the NFT they would like to check and then mention the bot (@CoinSharesNFTAI) in the tweet.

In the announcement, CoinShares stated that Pricing NFTs could be a difficult task, especially as their value is volatile and millions of them are available on the market. 

“Building on our crypto and quantitative expertise, we came up with an experimental project to price NFTs, whether you own them already or not. This model relies on tested mathematical concepts to predict a fair price for any NFT currently listed on @opensea,” said CoinShares in the announcement.

The bot predictions are based on identified factors such as hype, rarity, utilities, content, and products, as well as transaction volume and history of an NFT project.

CEO Jean-Marie Mognetti said in a release, noting: NFTs are one of the newly discovered digital assets in the crypto industry today, and it’s essential that everyone should feel comfortable while buying and selling them. He added, “To this end, we made our proprietary NFT pricing algorithm available to the public through our CoinSharesNFTAI Twitter bot.”

CoinShares is a Europe-based digital asset investment and trading group pioneered in innovative financial products and services for the crypto industry.

In the firm’s recent news, CoinShares announced its intention to launch an algorithmic trading platform, HAL, for retail traders. The platform will provide retail traders access to a range of algorithmic trading strategies for $20 per month.

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CoinShares to Launch Algorithmic Trading Platform for Retail Traders

by Blockchain News

CoinShares is planning to launch an algorithmic trading platform for retail traders.

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The European-based digital asset manager’s new platform HAL will provide retail traders access to a range of algorithmic trading strategies for $20 per month.

HAL is a nod to both the early Bitcoin contributor Hal Finney as well as the artificial intelligence in Stanley Kubrick’s famous movie “2001: A Space Odyssey”.

Long-term holders who want to achieve better risk-adjusted returns in volatile markets as well as those who want to be more active traders will benefit from HAL as the platform has been designed for such user types.

However, even though HAL can be overlaid with other crypto exchanges, traders cannot buy and sell cryptocurrencies with it.

“Crypto is an extraordinarily volatile asset class where a lot of consumers tend to get their hands burned. Sometimes it’s because crypto is complicated, trades 24/7, and investors don’t always know what to do,” CoinShares CEO Jean-Marie Mognetti told Yahoo Finance.

“In a new, still-evolving ecosystem, we are very proud to be at the cutting edge of providing professional-level products with simple user experience to traders, enabling them to do much more with their crypto than simply hold.”

According to its latest quarterly report, CoinShares reported an $8.2 million adjusted EBITDA loss for Q2 2022, down year over year from $28.6 million. 

However, the digital asset management firm still saw a $105 million net inflow to its spot exchange-traded products over the year’s first half.

According to Crunchbase, the offering this week follows the firm’s acquisition in December of French fintech Napoleon for $15.8 million.

Blockchain.News reported that Coinshares showed that outflows from cryptocurrency investment products reached $9.2 million ins early Sept, with the majority of inflows coming from short investment products.

Bitcoin (BTC) accounted for the lion’s share of these outflows with 11 million outflows, driving a 4-week streak of outflows throughout August.

However, declining Bitcoin short positions reached a record short inflow of $18 million, bringing total assets under management to an all-time high of $158 million.

Altcoins had small inflows, notably Solana and Avalanche, which each had a combined inflow of $500,000.

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Short Bitcoin Investment Products Saw Record Inflow of $18m Last Week: CoinShares

by Blockchain News

Data from digital asset management firm Coinshares showed that outflows from cryptocurrency investment products reached $9.2 million last week, with the majority of inflows coming from short investment products.

Bitcoin (BTC) accounted for the lion’s share of these outflows with 11 million outflows, driving a 4-week streak of outflows throughout August.

However, declining Bitcoin short positions reached a record short inflow of $18 million, bringing total assets under management to an all-time high of $158 million.

Altcoins had small inflows, notably Solana and Avalanche, which each had a combined inflow of $500,000.

Source: CoinShares

Coinshares statistics show that capital inflows are distributed across regions. Canada’s inflows totalled $4.7 million, while the U.S.’s total inflows of $0.8 million were only a fraction.

Corresponding capital outflows from other regions are not particularly large. Brazil, Switzerland, and Germany saw total inflows of $3.2 million, $1.7 million, and $1.6 million, respectively.

According to a report by CoinShares investment strategist James Butterfill:

“In a similar fashion to last week, this week saw multi-year low weekly trading volumes totalling US$915m. Recent price declines have pushed down total assets under management (AuM) to $27.9 billion, their lowest point since early July this year, having begun the year at $64 billion. “

Bitcoin has gained 1.05% over the past 24 hours and rebounded by $$20,119.71, according to CoinMarketCap. Over the same period, Ethereum rose 5.45% to $1,659.

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Crypto Weekly Outflows Reached $17m, Ending Six Consecutive Weeks Inflow: CoinShares

by Blockchain News

Outflows from crypto investment products reached $17 million in the week ended Aug. 12, according to digital asset management firm Coinshares, ending a six-week run of inflows for the cryptocurrency industry.

Bitcoin (BTC) accounted for the lion’s share of these outflows with $21 million, driving a 2-week streak of outflows throughout August. However, falling Bitcoin short positions flowed into $2.6 million.

ProShares, Purpose, 3iQ Digital Asset Management and CI Investments crypto investment providers all saw corresponding outflows.

Source: CoinShares

Per the statistics from Coinshares show that capital outflows are distributed across regions. Canadian outflows totalled $26 million, $10 million outflows from the U.S., accounting for the majority of outflows, and inflows to European exchanges totalled $20 million.

The corresponding outflows from other regions are not particularly large. The most notable were Australia, Brazil, and Switzerland, with outflows of $800,000, $1 million, and $600,000, respectively.

According to a report by James Butterfill, an investment strategist at CoinShares:

“It is difficult to discern if this is a meaningful change in sentiment given its small size, although minor outflows were seen across a broad set of providers. It also comes at a time of low trading volume and a recovery in prices, suggesting there could be an element of minor profit-taking.”

Last week, blockchain-related equities saw an inflow of $8 million, indicating an improvement in market sentiment.

Bitcoin rose 1.47% over the past seven days and regained $25,000 on Sunday, according to CoinMarketCap. During the same period, Ethereum rose 7.38% over the week to $1,905.

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Crypto Weekly Inflows Have Topped $500M for Six Consecutive Weeks: CoinShares

by Blockchain News

Inflows into crypto investment products have been experiencing an uptick for six consecutive weeks, topping $500 million, according to a report by market insight provider CoinShares.

The study dubbed “Volume 92: Digital Asset Fund Flows Weekly Report” highlighted:

“Digital asset investment products saw inflows totalling US$3m last week marking the 6th consecutive week of inflows that total US$529m, representing 1.7% of total assets under management (AuM).”

Source:CoinShares

 

CoinShares noted that constant inflows are happening despite the crash in the crypto market witnessed in the second quarter of 2022.

 

As the much-anticipated merge in the Ethereum network edges closer, more inflows have been trickling into the second-largest cryptocurrency. The report pointed out:

“Ethereum saw inflows totalling US$16m and is enjoying a near 7 consecutive week run of inflows totalling US$159m. We believe this turn-around in investor sentiment is due to greater clarity on the timing of The Merge.”

The merge, which is expected to happen on September 19, will change the current proof-of-work (PoW) framework to a proof-of-stake (PoS) consensus mechanism. Moreover, it’s speculated to be the biggest software upgrade in the Ethereum ecosystem.

 

American multinational investment bank Citi recently noted that the merge would make Ethereum a “yield-bearing asset,” Blockchain.News reported. 

 

On the other hand, CoinShares noted that despite sentiment in the crypto market improving, trading volumes remained low the past week at $1.1 billion compared to the year-to-date weekly average of $2.4 billion.

 

“Bitcoin saw very minor outflows totalling US$8.5m while short-Bitcoin investment products saw a record outflow totalling US$7.5m, and for the second consecutive week suggesting investors believe Bitcoin prices have troughed,” CoinShares added. 

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Institutional Investment in ETH Turns Positive, with Inflows for Four Weeks in a Row

by Blockchain News

Ethereum crypto investment product inflows reached $120 million over the past week (up to July 15). The last time this happened was in June 2021, according to digital asset management firm Coinshares. 

Digital investment products exposed to ETH assets have seen inflows for four consecutive weeks. ETH investment products had experienced 11 weeks of outflows before this week.

This week’s data from Coinshares showed that Bitcoin (BTC) accounted for these funds with an inflow of $19 million, pushing year-to-date investments to $241.3 million.

Ether investment products saw inflows of $8.1 million this week, up from $120 million last week, making it the largest weekly inflow since June 2021.

Source: CoinShares

“It also suggests that as The Merge progresses to completion, investor confidence is slowly recovering,” the report said.

Solana (SOL) also reached $1.8 million in investment, making Solana the ninth largest crypto investment product with $116 million in assets under management.

Coinshares added that most other altcoins saw inflows last week, most notably Cardano, which saw an influx of $600,000.

These statistics showed that July-to-date inflows reached $394 million, with total assets under management (AuM) recovering to $30 billion in early June 2022.

Bitcoin has fallen 2.98% over the past seven days to hit $21,087 during intraday trading, according to CoinMarketCap. Over the past 24 hours, the second-largest cryptocurrency has lost 6.59% to trade at $1,417 during the session.

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Bitcoin (BTC) $ 26,637.14 1.55%
Ethereum (ETH) $ 1,595.00 1.75%
Litecoin (LTC) $ 65.04 0.25%
Bitcoin Cash (BCH) $ 209.73 1.88%