Digital Assets Saw Inflows of $114M Last Week

Digital Assets Saw Inflows of $114M Last Week

The four-week run of inflows totals $345 million.

JamesButterfill310x310
|
Head of Research and Investment Strategy
|
Reviewed by: James Butterfill
,
Edited by: James Butterfill

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]

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.