Volume 184: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Inflows of US$1bn push year-to-date inflows to a record high of US$14.9bn

Digital asset investment products saw inflows for the third consecutive week totalling US$1.05bn, with cumulative flows representing an all-time record of US$14.9bn for the year so far. Recent price rises have also pushed total digital asset ETPs to US$98.5bn. Weekly ETP trading volumes have also risen by 28% to US$13.6bn.

Regionally, the flows were focussed primarily on the US, which saw US$1.03bn of inflows, with incumbent Grayscale, seeing outflows subside dramatically to only US$15m for the week. Germany and Switzerland also saw inflows of US$48m and US$30m respectively. Disappointingly, since the initial positive launch of Bitcoin spot-based ETFs in Hong Kong, (which saw US$300m in the first week) there have been further outflows last week of US$29m.

The majority of inflows were in to Bitcoin ETPS, which saw US$1.01bn of inflows last week, while short-bitcoin suffered another week of outflows totalling US$4.3m, suggesting sentiment is turning broadly positive despite the recent price rises. This is likely due to investors interpreting the FOMC minutes and recent macro data as mildly dovish.

Ethereum saw inflows of US$36m for the week, the highest since March and likely an early reaction to the approval of ETH ETFs in the United States. Solana also saw inflows of US$8m last week.