Ethereum Leads Crypto Fund Demand

Ethereum Leads Crypto Fund Demand

New crypto funds using Cardona and Litecoin off to good start.

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$373 million highlighting a resurgence in demand last week.
  • Some providers continue to see outflows in what we believe is continued profit-taking behaviour. Unusually, we saw inflows across the full spectrum of digital assets.
  • The positive momentum for Ethereum continued, with inflow of US$60 million last week, with total AUM reaching a record of US$16.5 billion. Bitcoin achieved this level of AUM only in December 2020.
  • New investment product entrants, Cardano and Litecoin, got off to a good start, with inflows of US$6.6 million and US$3.6 million, respectively.

 

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Fig1 Weekly Crypto Asset

 

 

Fig1 Weekly Crypto Asset

 

Digital asset investment products saw inflows totaling US$373 million, highlighting a resurgence in demand last week. Some providers continue to see outflows in what we believe is continued profit-taking behaviour. Unusually, we saw inflows across the full spectrum of digital asset.

As usual, Bitcoin received the lion’s share of the inflows, which totaled US$290 million for last week. The positive momentum for Ethereum continued, with inflow of US$60 million last week, with total AUM reaching a new record of US$16.5 billion. Bitcoin achieved this level of AUM management only in December 2020.

Both Bitcoin and Ethereum saw outflows in some individual products, but represented a negligible 0.27% and 0.1% of total AUM.

New investment product entrants, Cardano and Litecoin got off to a good start, with inflows of US$6.6 million and US$3.6 million, respectively. This brings total AUM to US$10.8 million for Cardano and US$12.5 million for Litecoin.

Trusted exchange trading volumes for Bitcoin averaged US$10.5 million last week, with Bitcoin investment products higher than recent weeks, with total trading volumes of US$6.1 billion.

 

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James Butterfill is an investment researcher at CoinShares. He can be reached 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.