Digital Assets Capture $43M of Inflows

Digital Assets Capture $43M of Inflows

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

Head of Research and Investment Strategy
Reviewed by: Staff
Edited by: Mark Nacinovich
  • 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.

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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. 

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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.