Digital Assets See Highest Weekly Gain Since October 2021

Takeaways

• Digital asset investment products saw minor inflows totalling US$9.2m last week, while trading volumes remained low at US$866m for the week, both suggesting that the recent rally in digital assets was not investment product led.
• The recent price appreciation has led to a weekly gain of over 13% in assets under management, the largest since October 2021.
• Ethereum broke its 8-week spell of outflows with an inflow of US$5.6m, seemingly benefitting from the broader improvement in sentiment.

Digital asset investment products saw minor inflows totalling US$9.2m last week, while trading volumes remained low at US$866m for the week, both suggesting that the recent rally in digital assets was not investment product led. The recent price appreciation has led to a weekly gain of over 13% in assets under management (AuM), the largest since October 2021.

Bitcoin saw the largest flows of any asset, but small at US$10m, while short-bitcoin investment products saw outflows totalling US$1.5m.

Ethereum broke its 8-week spell of outflows with an inflow of US$5.6m, seemingly benefitting from the broader improvement in sentiment.

Multi-asset investment products continue to suffer with outflows of US$3.2m, its 7th week of outflows which totals US$16m. Investors pulling out of broad investment products while there have been inflows into specific digital assets, suggest they are becoming more discerning over what they invest in.

In altcoins, only Solana and Polkadot saw inflows totalling US$1.3m and US$0.4m respectively. XRP reversed the gains it had seen the prior week with outflows of US$3.3m last week.

The positive sentiment was echoed in blockchain equities which saw inflows totalling US$3.8m.

Contact James Butterfill at [email protected]