Investors Buy Into Digital Asset Price Weakness

• Digital asset investment products saw record weekly inflows for this year, totalling US$274m last week. A strong signal that investors saw the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity.
• Bitcoin was the primary benefactor, with inflows totalling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset.
• UST, the stable coin at the epicentre of this recent price correction, saw AuM fall by 99% over the week, despite this some intrepid investors added US$0.043m to positions.
• Blockchain equity investors panicked, with outflows totalling US$51m.

Digital asset investment products saw record weekly inflows for this year, totalling US$274m last week. A strong signal that investors saw the recent UST stable coin de-peg and its associated broad sell-off as a buying opportunity. North American investors saw inflows totalling US$312m, in contrast to European investors, where sentiment was polarised but in aggregate saw outflows totalling US$38m.

Bitcoin was the primary benefactor, with inflows totalling US$299m last week, suggesting investors were flocking to the relative safety of the largest digital asset. Short-Bitcoin saw minor inflows totalling US$0.7m, a slow-down from previous weeks.

UST, the stable coin at the epicentre of this recent price correction, saw assets under management (AuM) fall by 99% over the week, despite this some intrepid investors added US$0.043m to positions.

Ethereum continued to see outflows totalling US$27m last week, this has been a steady trickle out this year with outflows now reaching US$236m, representing a substantial 2.6% of total AuM.

Multi-asset investment products saw inflows totalling US$8.6m suggesting investors saw a diversified approach as an opportunity to buy into this recent price weakness.

Blockchain equity investors panicked, with outflows totalling US$51m, the third largest outflow on record.

Contact James Butterfill at [email protected]