Crypto Fund Investors Unfazed By China Ban

Digital asset investment products saw inflows totaling US$95 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 totalling US$95m last week, bringing the total run of inflows over the last 6 weeks to US$320m.
  • The continued inflows suggest the recent headwinds for digital assets, such as the widened China ban, were seen as buying opportunities for investors.
  • Ethereum followed bitcoin with inflows totalling US$29m last week. Sentiment has remained relatively buoyant for Ethereum as the amount staked to Eth2.0 progresses.

 

 

 

Digital asset investment products saw inflows totalling US$95m last week, bringing the total run of inflows over the last 6 weeks to US$320m. The continued inflows suggest the recent headwinds for digital assets, such as the widened China ban, were seen as buying opportunities for investors.

Bitcoin saw the largest inflows of any investment product, totalling US$50m, although, it has experienced the brunt of negative investor sentiment over the last two quarters. Last week marks only the 4th week of inflows out of the last 17.

Ethereum followed Bitcoin with inflows totalling US$29m last week. Sentiment has remained relatively buoyant for Ethereum as the amount staked to Eth2.0 progresses. By our estimates, 6.6% of Ethereum is staked to Eth2.0, with growth in staking essential for investor sentiment, as investors see it as a potential environmentally alternative to other proof-of-stake digital assets.

From an assets under management (AuM) perspective, both Solana and Polkadot continue to see outsized inflows totalling US$3.9m and US$2.4m, representing 4.5% and 3.2% of AuM respectively.

 

 

 

 

 

 

 

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.