Digital Assets Ring Up $346M of Inflows

Anticipation of a spot bitcoin ETF is fueling flows into cryptocurrency investment products.

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 of $346 million last week, the largest weekly inflows in a run of nine straight weeks of positive flows. 
  • Bitcoin had inflows of $312 million last week, bringing year-to-date inflows to just over $1.5 billion as short sellers continue to capitulate. 
  • Ethereum had $34 million of inflows last week, bringing a four-week run to $103 million of inflows, almost correcting its run of outflows this year and marking a decisive turn-around in sentiment.

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    Digital-asset investment products saw inflows of $346 million last week, the largest weekly inflows in a run of nine straight weeks of inflows. The run, spurred by anticipation of a spot-based exchange-traded fund launch in the U.S., is the largest since the bull market in late 2021. The combination of price rises and inflows has now pushed up total assets under management to $45. 3 billion, the highest amount in over one and a half years. 

    Regionally, Canada and Germany comprised 87% of total inflows, with continued low participation from the U.S. (presumably as investor wait for the ETF launch), which saw only $30 million of inflows last week. 

    Bitcoin saw inflows of $312 million last week, bringing year-to-date inflows to just over $1.5 billion. Short sellers continue to capitulate, with outflows of $900,00 last week. That was the third straight week of outflows, as assets under management in short bitcoin have fallen by 61% since their peak in April.

    Volume of exchange-traded products as a percentage of total spot bitcoin volumes remain well above average, representing 18% last week, highlighting the continued increased use of ETPs to gain exposure to the asset class.

    Ethereum saw $34 million of inflows last week, bringing a four-week run to $103 million, almost correcting its run of outflows this year and marking a decisive turnaround in sentiment. 

     Solana, polkadot and chainlink saw inflows of $3.5 million, $800,000 and $600.000. respectively. 

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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.