Digital Assets Snare $176M of Infows

Bitcoin saw $133 million in inflows, ethereum had $31 million of inflows, and blockchain equities marked their seventh consecutive week of inflows.

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.