Post-Ethereum Merge Shows Continued Investor Caution

Takeaways

• Digital asset investment products saw inflows totalling US$7m last week, another low activity week. The mixture of positive and negative flows by provider and asset suggests continued lack of engagement amongst investors at present.
• Post Ethereum Merge flows indicate continued caution amongst investors with a 4th week of outflows totalling US$15m.
• Bitcoin saw inflows totalling US$17m, the first inflows following a 5-week run of outflows that totalled US$93m.

Digital asset investment products saw inflows totalling US$7m last week, another low activity week. The mixture of positive and negative flows by provider and asset suggests continued lack of engagement amongst investors at present. We have recently written about crypto prices and their relationship to the USD, with hawkish rhetoric from the FED hampering any potential gains in crypto.

Regionally, the inflows were focussed on the US and Germany, totalling US$14m and US$11m respectively. While Sweden and Canada saw outflows totalling US$16m and US$4.2m respectively.

Post Ethereum Merge flows indicate continued caution amongst investors with a 4th week of outflows totalling US$15m. This run of outflows, while minor, now totals US$80m. Our research highlights The Merge got off to a good start with a high participation amongst the validators.

Bitcoin saw inflows totalling US$17m, the first inflows following a 5-week run of outflows that totalled US$93m. Meanwhile, short-bitcoin also saw minor inflows totalling US$2.6m with total AuM close to a record US$169m.

Multi-asset investment products remain a stalwart during this bearish period having only seen a few weeks outflows this year. YTD inflows now total US$224m almost matching Bitcoin’s total inflows, implying investors are seeking safety in numbers.

Contact James Butterfill at [email protected]