Digital Assets Snare $176M of Infows

Digital Assets Snare $176M of Infows

Digital-asset investment products have had 10 straight weeks of net inflows.

Head of Research and Investment Strategy
Reviewed by: Staff
Edited by: Mark Nacinovich
  • Digital-asset inflows totaled $176 million last week, reaching a 10-week total of $1.76 billion, the highest since October 2021's futures-based ETF launch in the U.S. 
  • Canada, Germany and the U.S. led with significant inflows. Hong Kong experienced minor outflows, and Asia overall has had year-to-date net outflows. 
  • Bitcoin saw $133 million in inflows, ethereum had $31 million of inflows, and blockchain equities marked their seventh consecutive week of inflows.

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    Digital-asset investment products saw inflows of $176 million last week, marking the 10th consecutive week of inflows totaling $1.76 billion, or 4% of assets under management.

    This run of inflows is now the largest since October 2021, which saw the launch of the futures-based exchange-traded fund in the U.S. Total assets under management has risen by 107% this year so far, but at $46.2 billion remains well below the all-time high of $86.6 billion seen in 2021.

    Trading volumes in exchange-traded products remain high at $2.6 billion for the week, representing 12% of total bitcoin volumes. 

    Regionally, the focus was Canada, Germany and the U.S., which saw inflows of $79 million, $57 million and $54 million, respectively. Minor outflows were seen from Hong Kong totaling $1 million. Although the total assets under management in the Asian region are small and the number of ETPs remains very low, year-to-date it is one of the only regions to see net outflows. 

    Bitcoin was the main beneficiary, seeing $133 million of inflows, although short bitcoin saw inflows of $3.6 million last week. That came after three straight weeks of outflows. 

    Ethereum saw a further $32 million of inflows last week, bringing a five-week run to $134 million of inflows. For the first time this year, net flows are now positive at $10 million, following a long bout of negative sentiment. 

    Blockchain equities have had seven consecutive weeks of inflows, with last week’s $17.4 million of inflows the largest since July 2022. 

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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.