Digital Asset Funds Snap Inflows Streak

• Digital asset investment products saw outflows totalling US$110m last week following a 7-week run of inflows.

• US$80m of the outflows derived from North America with the outflows beginning at the start of last week suggesting they are a response to the US Presidential Executive Order to study digital assets more deeply.

• Multi-asset (multi-coin) and blockchain equity investment products saw inflows totalling US$12m and US$4.1m last week and remain the most popular amongst investors.

Digital asset investment products saw outflows totalling US$110m last week following a 7-week run of inflows. US$80m of the outflows derived from North America with the outflows beginning at the start of last week suggesting they are a response to the US Presidential Executive Order to study digital assets more deeply. Given there has been little price response and that outflows of US$30m were also seen in Europe, highlights the reasons are unclear. Regulatory concerns and geopolitics remain at the forefront of investors’ concerns for digital assets.

Bitcoin saw outflows totalling US$70m last week off the back of low volumes. Investment products traded US$1bn last week compared the average US$1.24bn, representing just 5% of total bitcoin trading volumes.

Ethereum, on a relative basis saw the largest outflows last week, totalling US$51m, outflows year-to-date represent 1.2% of assets under management (AuM).

Solana, Ripple and Polkadot saw minor outflows totalling US$0.3m, US$0.7m and US$0.9m respectively while Cardano and Litecoin saw minor inflows of US$0.2m.

Multi-asset (multi-coin) and blockchain equity investment products saw inflows totalling US$12m and US$4.1m last week and remain the most popular amongst investors with inflows representing 3.2% and 6.7% of AuM respectively.

Contact James Butterfill at [email protected]