Digital Assets Capture $43M of Inflows

The total last week for digital-asset investment products marked the 11th straight week of positive flows.

• Digital-asset investment products experienced their 11th straight week of inflows last week with $43 million of inflows as short position inflows increased because of the recent price appreciation and perceived downside risks. 
• Regionally, Europe led with $43 million of inflows. The U.S. followed with $14 million of inflows (half in short positions), while Hong Kong and Brazil saw outflows of $8 million and $4.6 million, respectively. 
• Blockchain equities saw their largest weekly inflows on record at $126 million.

Digital-asset investment products saw inflows of $43 million, the 11th consecutive week of inflows, but a marked decline relative to prior weeks. Recent price appreciation has led to significant inflows into short positions as some investors anticipate a drop in prices.  

Regionally, Europe continues to dominate inflows with $43 million of inflows, while the U.S. had only $14 million of inflows. Half of that were inflows into short positions. Hong Kong saw its second straight week of outflows with $8 million of outlows, Brazil saw minor outflows of $4.6 million.

Bitcoin remains the primary focus of investors, with $20 million of inflows, bringing year-to-date inflows to $1.7 billion. While short-bitcoin saw $8.6 million of inflows, presumably as some investors see the current price rises as unsustainable.

In a remarkable turnaround, ethereum saw its sixth week of inflows, totaling $10 million. Just seven weeks ago, ethereum had outflows of $125 million for the year, Now, it has $19 million of inflows year to date

Solana and avalanche saw inflows of $3 million and $2 million, respectively, remaining firm favorites among altcoins.