Digital Assets Gain $66M in Flows Last Week

Digital Assets Gain $66M in Flows Last Week

That marks the fourth consecutive week of inflows, possibly on expectations of a spot bitcoin ETF.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: etf.com Staff
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Edited by: Mark Nacinovich
  • Digital-asset investment products saw inflows for the fourth consecutive week with $66 million in inflows last week. Total assets under management have now risen to $33 billion. 
  • While the most recent inflows are likely linked to excitement over a spot bitcoin ETF launch in the U.S., they are relatively low in comparison with June’s figures, suggesting more caution from investors this time round. Solana had a further $15.5 million in inflows last week, bringing year-to-date inflows to $74 million – making it the most popular altcoin this year so far.

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    Digital-asset investment products saw inflows for the fourth consecutive week in a row with $66 million in inflows, bringing the four-week run of inflows to $179 million. Following recent price appreciation, total assets under management have risen by 15% since their lows in early September. They now total nearly $33 billion, the highest amount since mid-August.  

    While the most recent inflows are likely linked to excitement over a spot bitcoin ETF launch in the U.S., they are relatively low in comparison with the initial inflows following BlackRock’s announcement in June, when four consecutive weeks of inflows totaled $807 million. It suggests that the lower inflows this time round, despite the positive news from the Grayscale Investments vs. the Securities and Exchange Commission court ruling, indicate that investors adopting a more cautious approach this time. 

    Some 84% of the inflows were into bitcoin investment products, pushing inflows year-to-date to $315 million. Earlier last week, price rises had pushed inflows into short-bitcoin to $23 million, but those positions were pared back substantially, with net inflows by the end of the week totaling just $1.7 million, suggesting short sellers are losing confidence. 

    Continued concerns over ethereum have led to further outflows of $7.4 million, the only altcoin to see outflows last week. This is in stark contrast to solana which saw a further $15.5 million in inflows last week, bringing year-to-date inflows to U$74 million, representing 47% of total assets under management.

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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.