Ethereum Leads Crypto Fund Demand

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.

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.

James Butterfill is an investment researcher at CoinShares. He can be reached at [email protected].