Cautious Inflows Into Crypto Funds

Takeaways

Digital asset investment products saw inflows for a second week totaling $19 million last week. While a relatively small amount, it continues to suggest investors are beginning to cautiously add to positions at these depressed price levels. We are seeing an increasing price sensitivity to monetary policy statements, with the recent FOMC meeting having an immediate intraday price response.

Bitcoin saw inflows for a second week totaling $22 million while, earlier last week, total assets under management (AUM) hit their lowest point since July 2021 at $29 billion, having since recovered to $31 billion.

Ethereum continues to suffer from negative sentiment, with outflows of $27 millio, the eighth consecutive week, which now total $272 million, representing 2.4% of AUM. While alarming, this current retrenchment remains a way off the outflows seen in February 2018, when outflows totaled 10% of AUM.

Solana, Polkadot and Cardano saw outflows last week suggesting investors are shunning altcoins, although multi-asset funds (a combination of coins) saw inflows totaling $32 million, the largest since June 2021, suggesting investors are adopting a diversified investment approach. Inflows totaling $15 million were also seen in in blockchain equity investment products.

Contact James Butterfill at [email protected]