Altcoins Favored Following Recent Price Crash

Takeaways

• Digital asset investment products saw minor outflows totalling US$5.1m. The end of the week saw minor inflows following the news that one of the world’s largest asset managers has applied for Bitcoin ETP in the US.
• Despite improving regulatory conditions in Hong Kong, we have not seen any measurable inflows into ETPs year—to-date.
• The prior week crash in altcoin prices prompted investors to add to positions, with inflows totalling US$2.4m.

Digital asset investment products saw minor outflows totalling US$5.1m. The end of the week saw minor inflows following the news that one of the world’s largest asset managers has applied for a Bitcoin ETP in the US, although these inflows were not enough to offset outflows seen earlier in the week. Consequently, a 9th week of outflows was recorded, with this run of outflows now totalling US$423m.

Regionally, the US and Germany saw minor inflows of US$3.7m and US$2.4m respectively. Looking at total inflows year-to-date, the US remains on top with inflows of US$147m, while Canada lags with outflows of US$277m. Despite improving regulatory conditions in Hong Kong, we have not seen any measurable inflows into ETPs year—to-date while total assets under management (AuM) remain low at US$39m.

The prior week crash in altcoin prices prompted investors to add to positions, with inflows totalling US$2.4m, with XRP, Cardano and Polygon being the focus, seeing inflows of US$1m, US$0.6m and US$0.2m respectively.

Ethereum saw the largest outflows for the week totalling US$5m, while both Tron and Avalanche saw outflows of US$0.4m.

Blockchain equities saw the largest outflows since FTX, totalling US$12.3m.

Contact James Butterfill at [email protected]