Digital Assets Saw Inflows of $114M Last Week

Takeaways

• Digital asset investment products saw inflows totalling US$114m last week, which is seeing continued improving sentiment for the asset class. This 4-week run of inflows now total US$345m.
• Bitcoin has again been almost the sole focus for investors, with inflows of US$104m.
• Despite the successful launch of Ethereum’s yield features (Shapella), only US$0.3m of inflows were seen last week.

Digital asset investment products saw inflows totalling US$114m last week, which is seeing continued improving sentiment for the asset class. This 4-week run of inflows now total US$345m, almost fully correcting the prior 6-week run of outflows that totalled US$408m.  Regionally, inflows were seen across most geographies, but predominantly in the US and Germany with inflows of US$58m and US$35m respectively.

This improving sentiment comes at a time of very low volumes in the Bitcoin market, averaging just US$5.6bn per day compared to US$12bn for the full year.

Bitcoin has again been almost the sole focus for investors, with inflows of US$104m last week, bringing its total 4-week run to US$310m. We believe this is a flight to safety by investors fearful of the ongoing traditional finance challenges. Opinion remains divided though, with short bitcoin seeing inflows totalling US$14.6m last week.

Despite the successful launch of Ethereum’s yield features (Shapella), only US$0.3m of inflows were seen last week. Little activity in altcoins except Polygon, which saw US$2.1m of outflows last week.

Blockchain equities saw inflows of US$5.8m last week, recent price appreciation has pushed total assets under management to US$1.9bn, the highest since October 2022, pre-FTX.

Contact James Butterfill at [email protected]