Digital Assets Took in $2.5M Last Week

Trading volumes in digital investment products fell by 33% compared to the prior week.

Takeaways

• Digital asset investment products saw inflows totalling a lacklustre US$2.5m, with trading volumes in investment products falling by 33% compared to the prior week.
• Sentiment for Bitcoin was fairly supportive, seeing inflows of US$8.8m, while short bitcoin saw outflows of US$2.5m.
• The outflows in Ethereum (US$2.8m) and inflows into short-Ethereum (US$0.5m) suggest investors remained concerned for the upcoming Shanghai upgrade.

Digital asset investment products saw inflows totalling a lacklustre US$2.5m, with trading volumes in investment products falling by 33% compared to the prior week. This was reflected in the broader bitcoin market where trading volumes on trusted exchanges fell by 61%, with both datapoints suggesting much less participation in the crypto market compared to the prior week.

Regionally, some divergence was seen, with Germany seeing US$21m inflows, while the US, Canada and Switzerland all saw outflows totalling US$12.4m, US$3.9m and US$1.5m respectively.

Sentiment for Bitcoin was fairly supportive, seeing inflows of US$8.8m, while short bitcoin saw outflows of US$2.5m. The price appreciation over the week left bitcoin total assets under management at their highest since the collapse of 3 Arrows Capital in June 2022 at US$23.5bn.

Flows into altcoins were very mixed with XRP and Polygon seeing inflows totalling US$0.8m and US$0.3m respectively. While Binance and Polkadot saw outflows totalling US$0.34m and US$0.29m respectively.

The outflows in Ethereum (US$2.8m) and inflows into short-Ethereum (US$0.5m) suggest investors remained concerned for the upcoming Shanghai upgrade which will enable un-staking (yield distribution).

Contact James Butterfill at [email protected]