Digital Assets See Sixth Straight Week of Inflows

It's the second week of outflows for short-bitcoin investments.

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$3m last week marking the 6th consecutive week of inflows that total US$529m.
  • Bitcoin saw very outflows totalling US$8.5m while short-bitcoin investment products saw a record outflow totalling US$7.5m, and for the second consecutive week suggesting investors believe bitcoin prices have troughed.
  • Ethereum saw inflows totalling US$16m and is enjoying a near 7 consecutive week run of inflows totalling US$159m. We believe this turn-around in investor sentiment is due to greater clarity on the timing of The Merge.

 

 

Digital asset investment products saw inflows totalling US$3m last week marking the 6th consecutive week of inflows that total US$529m, representing 1.7% of total assets under management (AuM). Despite the crash in prices in Q2 2022, 32 new investment products were launched, primarily in altcoins, second only to the peak of product launches in Q4 2021 at 33.

Minor inflows were seen across all regions except Canada which saw outflows totalling US$30m. Notable inflows were seen in the US and Germany totalling US$17m and US$8m respectively.

Bitcoin saw very minor outflows totalling US$8.5m while short-bitcoin investment products saw a record outflow totalling US$7.5m, and for the second consecutive week suggesting investors believe bitcoin prices have troughed.

Ethereum saw inflows totalling US$16m and is enjoying a near 7 consecutive week run of inflows totalling US$159m. We believe this turn-around in investor sentiment is due to greater clarity on the timing of The Merge where Ethereum shifts from proof-of-work to proof-of-stake.

Despite improving sentiment trading volumes remain very low at US$1.1bn for the week versus the year-to-date weekly average of US$2.4bn. We believe the low participation is seasonal as a similar trend has been seen in previous years.

 

 

 

 

 

 

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.