Digital Asset Inflows Saw $10M Last Week

But investor hesitancy continues.

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

  • Digital asset investment products saw inflows totalling US$10.3m last week representing the third week of inflows. The flows remain low implying continued hesitancy amongst investors.
  • Bitcoin saw a third week of minor inflows totalling US$7.7m while short bitcoin resumed inflows with US$2.1m last week.
  • Ethereum saw a second week of inflows totalling US$5.6m while short Ethereum saw minor outflows totalling US$0.9m.
  • Last week saw broad negative sentiment for altcoins with outflows totalling US$3.5m.

 

 

Digital asset investment products saw inflows totalling US$10.3m last week representing the third week of inflows. The flows remain low implying continued hesitancy amongst investors, this is highlighted in investment product trading volumes which were US$886m for the week, the lowest since October 2020.

Regionally, minor outflows were seen across most of Europe last week with the exception of Sweden which saw inflows totalling US$16m. The US also saw minor inflows totalling US$7.7m while Germany saw outflows of US$9.1m.

Bitcoin saw a third week of minor inflows totalling US$7.7m while short bitcoin resumed inflows with US$2.1m last week.

Ethereum saw a second week of inflows totalling US$5.6m. Looking back, the Merge was not good for sentiment with outflows totalling US$65m in September. Increased regulatory scrutiny and a strong US Dollar being the likely culprits as the shift to Proof of Stake was executed successfully. Short Ethereum investment products saw minor outflows totalling US$0.9m.

Last week saw broad negative sentiment for altcoins (ex-Ethereum) with outflows totalling US$3.5m. Most effected were Polygon, Avalanche and Cardano with outflows of US$0.9m, US$0.8m and US$0.5m 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.