Digital Assets Took in $2.5M Last Week

Digital Assets Took in $2.5M Last Week

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

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 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]

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.