Digital Asset Products Saw Inflows of $8.3M Last Week

The seven-week bull run on bitcoin-short positions ended with outflows of $5 million.

JamesButterfill310x310
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Head of Research and Investment Strategy
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Reviewed by: James Butterfill
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Edited by: James Butterfill

Takeaways

  • Digital asset investment products saw inflows totalling US$8.3m last week, a continuation of the tepid investor appetite for digital assets at present.
  • Short-bitcoin investment products AuM rose to US$172m, the highest on record, prompting some profit taking with the first outflow in 7 weeks totalling US$5.1m.
  • Investors dipped their toes into Ethereum which saw inflows totalling US$7m last week.
  • The recent launch of a short-Ethereum investment product saw minor inflows totalling US$1.1m.

 

 

Digital asset investment products saw inflows totalling US$8.3m last week, a continuation of the tepid investor appetite for digital assets at present. Trading turnover for investment products remains half the weekly average for this year at US$1bn. Interestingly, there has been less price depreciation or outflows, as there has been in recent historical dollar rallies.

Regional flows highlight a minor divergence between North America and Europe, which saw US$9.4m outflows and US$15m inflows respectively.

Bitcoin saw minor inflows totalling US$0.1m with recent price movements pushing total assets under management (AuM) to US$15.9bn, the lowest point since end-June. Conversely, short-bitcoin investment products AuM rose to US$172m, the highest on record, prompting some profit taking with the first outflow in 7 weeks totalling US$5.1m.

Investors dipped their toes into Ethereum which saw inflows totalling US$7m last week, the first positive sentiment after the successful merge and following a 4-week run of outflows. The recent launch of a short-Ethereum investment product saw minor inflows totalling US$1.1m.

Investors continue to favour a multi-asset (multi-token) approach with inflows totalling US$1.8m last week. Cosmos and XRP both saw inflows totalling US$0.4m and US$0.5m respectively.

 

 

 

 

 

 

Contact James Butterfill at [email protected]

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.