Digital Asset Fund Flows Rebound

Digital Asset Fund Flows Rebound

The space registered net inflows for the first time in five weeks.

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

Takeaways

  • For the first time in five weeks, digital asset investment products saw inflows totalling US$63m last week.
  • And for the first time in nine weeks, inflows were seen across all individual digital assets implying a turnaround in sentiment among investors.
  • Bitcoin saw the most inflows totalling US$39m, with minor updates to the previous weeks’ data highlighting a two-week run of inflows.
  • While there were inflows last week, Bitcoin investment product trading turnover was the lowest since November 2020.

 

 

 

 

For the first time in five weeks, digital asset investment products saw inflows totalling US$63m last week. And for the first time in 9 weeks, inflows were seen across all individual digital assets implying a turnaround in sentiment among investors.

Bitcoin saw the most inflows totalling US$39m, with minor updates to the previous weeks’ data highlighting a two-week run of inflows now. While Ethereum, following three weeks of outflows, saw inflows totalling US$18m

Altcoins, such as XRP, Polkadot and Cardano all saw inflows of US$1.2m, US$2.1m and US$0.7m respectively.

While there were inflows into multi-digital asset investment products totalling US$0.6m, this was much smaller than previous weeks suggesting investors were less interested in diversification.

While there were inflows last week, Bitcoin investment product trading turnover was the lowest since November 2020. A similar observation was seen more broadly across the whole of the Bitcoin ecosystem with volumes down 38% relative to the average for 2021.

 

 

 

 

 

 

 

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.