Digital Assets See 4th Straight Week of Inflows

Digital Assets See 4th Straight Week of Inflows

Improving investor sentiment brings year-to-date inflows to $230 million.

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$76m last week, the 4th consecutive week of inflows with year-to-date inflows now at US$230m, highlighting a decisive change in investor sentiment for the beginning of 2023.
  • Bitcoin continues to be the primary investor focus, with inflows totalling US$69m, representing 90% of the total flows for the week.
  • Despite the improving clarity around unstaking, Ethereum saw only US$0.7m of inflows.

 

 

Digital asset investment products saw inflows totalling US$76m last week, the 4th consecutive week of inflows with year-to-date inflows now at US$230m, highlighting a decisive change in investor sentiment for the beginning of 2023. Total investment assets under management (AuM) have risen 39% year-to-date and are now US$30.3bn, the highest since mid-August 2022. Regionally, inflows were focussed on the US, Canada and Germany, with inflows of US$38m, US$25m and US$24m respectively.

Bitcoin continues to be the primary investor focus, with inflows totalling US$69m, representing 90% of the total flows for the week. The rest of the inflows were from short-Bitcoin which totalled US$8.2m over the same period, highlighting opinion remains divided over the sustainability of this rally. While the short-bitcoin inflows remain relatively small in comparison to the long-bitcoin inflows, the last 3 weeks’ inflows total US$38m, representing 26% of total AuM. So from a relative scaling perspective are meaningful, although this trade so far hasn’t worked well year to date with total short-bitcoin AuM having fallen by 9.2%.

Altcoins saw minor inflows into Solana (US$0.5m), Cardano (US$0.6m) and Polygon (US$0.3m), while Polygon saw outflows of US$0.5m). Despite the improving clarity around unstaking, Ethereum saw only US$0.7m of inflows.

 

 

 

 

 

 

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.