Record Inflows Into Short-Bitcoin Investments

Digital asset investment products saw inflows of $9.2 million last week.

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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 minor inflows totalling US$9.2m although the predominant inflow was into short investment products.
  • Bitcoin saw outflows totalling US$11m, representing the 4th consecutive week of outflows, but totals only US$70m.
  • Short-Bitcoin investment products saw a record US$18m inflows last week bringing total AuM to a record US$158m.
  • Altcoins saw minor inflows, notably from Solana and Avalanche which each saw inflows totalling US$0.5m.

 

 

Digital asset investment products saw minor inflows totalling US$9.2m although the predominant inflow was into short investment products. In a similar fashion to last week, this week saw multi-year low weekly trading volumes totalling US$915m. Recent price declines have pushed down total assets under management (AuM) to US$27.9bn, their lowest point since early-July this year, having begun the year at US$64bn.

Regionally, the data shows diverging sentiment despite the low trade sizes. Canada, Brazil, Switzerland and Germany all saw inflows totalling US$4.7m, US$3.2m, US$1.7m and US$1.6m respectively. The sole focus of negative sentiment was from the US, where inflows totalled US$0.8m, being masked by predominant inflows into short-Bitcoin investment products. This follows the recent FOMC meeting at Jackson Hole where a much more hawkish view was expressed, unexpected by some investors.

Bitcoin saw outflows totalling US$11m, representing the 4th consecutive week of outflows, but totals only US$70m. Short-bitcoin investment products saw a record US$18m inflows last week bringing total AuM to a record US$158m.

Multi-asset products continued to see inflows totalling US$3.3m while altcoins saw minor inflows, notably from Solana and Avalanche which each saw inflows totalling US$0.5m.

 

 

 

 

 

 

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.