Bitcoin Leading Digital Asset Inflows

Digital asset investment products saw inflows totaling US$226 million.

JamesButterfill310x310
|
Head of Research and Investment Strategy
|
Reviewed by: James Butterfill
,
Edited by: James Butterfill

Takeaways

  • Digital asset investment products saw inflows totalling US$226m, bringing the eight-week run of inflows to US$638m.
  • Bitcoin saw inflows totalling US$225, comprising a significant majority of the total. We believe the turnaround in sentiment towards Bitcoin is due to constructive statements from SEC Chair Gary Gensler, potentially allowing a Bitcoin ETF in the US.
  • Ethereum saw minor outflows totalling US$14m, and it continues to lose market share to Bitcoin, having fallen 1% to 24% of  assets under management (AuM) over the last week alone.
  • Solana (US$12.5m) and Cardano (US$3m) continuing to see inflows, suggesting the focus hasn’t entirely switched to Bitcoin.
Weekly Crypto asset Flows

(For a larger view, click on the image above)

 

Flows by Provider

 

 

Flows by Assets

Digital asset investment products saw inflows totalling US$226m, bringing the eight-week run of inflows to US$638m. Total assets under management (AuM) are now only 5% short of the all-time high at US$67bn due to recent positive price action.

Bitcoin saw inflows totalling US$225m, comprising a significant majority of the total. We believe the turnaround in sentiment towards Bitcoin is due to constructive statements from SEC chair Gary Gensler, potentially allowing a Bitcoin ETF in the US. Our recent survey data also highlights greater institutional participation in the asset class.

Ethereum saw minor outflows totalling US$14m and continues to lose market share to Bitcoin, having fallen 1% to 24% of AuM over the last week alone.

It was a mixed picture in other altcoins with recent favourites Solana (US$12.5m) and Cardano (US$3m) continuing to see inflows, suggesting the focus hasn’t entirely switched to Bitcoin. Other altcoins, namely Polkadot, Ripple and Litecoin didn’t fare so well with outflows of US$2.1m, US$0.6m and US$0.2m respectively.

Weekly Crypto Asset Flows by Institution

(For a larger view, click on the image above)

 

 

Weekly Crypto Asset Flows by Asset

(For a larger view, click on the image above)

 

Digital Asset ETP & Mutual fund Net New Assets

(For a larger view, click on the image above)

 

Crypto Asset Fund Flows as Percentage of Fund AuM

(For a larger view, click on the image above)

 

Assets Under Management by Institution

(For a larger view, click on the image above)

 

Bitcoin ETP & Mutual Fund Tumover as % of Total Bitcoin

(For a larger view, click on the image above)

 

 

Contact James Butterfill at [email protected]

James Butterfill has over 19 years of experience in fund management, investment banking, economics and asset allocation, gained most recently as an investment strategist at CoinShares. Previously, he was head of research at ETF Securities, with prior experience as a multi-asset fund manager and investment strategist at Coutts & Co., HSBC & ING Barings. James is a regular media commentator, and frequently appears on Bloomberg TV, CNBC, BBC and other broadcast outlets. Investment Week awarded him best ETF Eesearch and best FX Research in 2016 and 2017, respectively. James is currently an investment strategist at CoinShares, writing research white papers on investment themes, identifying investment opportunities and helping investors understand the digital asset world.