Record Inflows Into Short-Bitcoin Investments

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

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]