Cautious Inflows Into Crypto Funds

Digital asset investment products saw inflows for a second week, totaling $19 million last week.

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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

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.
  • Bitcoin saw inflows for a second week totaling $22 million.
  • Ethereum continues to suffer from negative sentiment, with outflows of $27 million, the eighth consecutive week, which now total $272 million.
  • Multi-asset funds saw inflows last week totaling $32 million.

 

 

 

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]

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.