Bitcoin Sees Inflows After Price Weakness

Although last week did see record assets for short bitcoin.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: James Butterfill
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Edited by: James Butterfill
  • Digital asset investment products surprisingly saw inflows totalling US$40m last week in what we believe was investors taking advantage of the substantive price weakness.
  • Bitcoin saw inflows totalling US$45m, the primary digital asset where investors expressed more positive sentiment, although…
  • Short Bitcoin saw the second largest weekly inflows on record, totalling US$4m. AuM is now at a record high of US$45m.
  • Solana was the only altcoin to see any measurable inflows, which totalled US$1.9m last week

 

 

Digital asset investment products surprisingly saw inflows totalling US$40m last week in what we believe was investors taking advantage of the substantive price weakness to add to positions. Flows were lopsided with inflows of US$66m in North American investment products while Europe saw outflows totalling US$26m.

Interestingly, we have not seen the same spike in investment product trading activity as we typically see historically during extreme price weakness periods, and it is too early to tell if this marks the end of the 4-week run of negative sentiment.

Bitcoin saw inflows totalling US$45m, the primary digital asset where investors expressed more positive sentiment, with total assets under management (AuM) falling to very similar levels seen during the lows in sentiment seen at the beginning of the year.

Negative Ethereum sentiment continues however, with outflows totalling US$12.5m last week, bringing total outflows year-to-date to US$207m, representing 0.8% of AuM.

Solana was the only altcoin to see any measurable inflows, which totalled US$1.9m last week.

Short Bitcoin saw the second largest weekly inflows on record, totalling US$4m. AuM is now at a record high of US$45m, although this still remains only 0.15% of Long Bitcoin investment products.

 

 

 

 

 

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.