Largest Digital Asset Inflows Since July 2022

Largest Digital Asset Inflows Since July 2022

Last week saw inflows of $199 million, correcting almost half of the prior nine weeks' outflows.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: Lisa Barr
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Edited by: Lisa Barr

Takeaways

  • Digital asset investment products saw the largest single weekly inflows since July 2022, totalling US$199m, correcting almost half of the prior 9 consecutive weeks of outflows.
  • Bitcoin was the primary beneficiary, seeing US$187m inflows last week, representing 94% of the total flows. Short-bitcoin saw outflows for the 9th consecutive week totalling US$4.9m.
  • This turn in sentiment didn’t trickle down to altcoins with only very minor inflows.

 

 

Digital asset investment products saw the largest single weekly inflows since July 2022, totalling US$199m, correcting almost half of the prior 9 consecutive weeks of outflows. While ETP trading volumes were 170% the average this year, totalling US$2.5bn for the week.

We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission. Total assets under management (AuM) are now at US$37bn, their highest since before the collapse of 3 Arrows Capital.

Bitcoin was the primary beneficiary, seeing US$188m inflows last week, representing 94% of the total flows. Short-bitcoin saw outflows for the 9th consecutive week totalling US$4.9m, with all 9 week’s outflows representing 60% of total AuM.

Ethereum saw inflows of US$7.8m, representing just 0.1% of AuM relative to Bitcoin’s inflows at 0.7%, suggesting appetite for Ethereum is lower than Bitcoin at present.

This turn in sentiment didn’t trickle down to altcoins with only very minor inflows into XRP and Solana totalling US$0.24m and US$0.17m respectively. But the improved sentiment did encourage some investors to buy multi-asset investment ETPs, with US$8m inflows last week.

 

 

 

 

 

 

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.