Surging Interest: Digital Asset Investment Products Receive Strong Inflows

Surging Interest: Digital Asset Investment Products Receive Strong Inflows
Table of Contents


  • Digital Asset Investments see a $598M inflow: Bitcoin dominates with $570M, while Ethereum, Chainlink, and Ripple also attract funds. Solana suffers outflow due to network issues.
  • U.S. leads the crypto investment boom, while other regions lag behind: U.S. sees a net inflow of $610M, but Grayscale faces a further outflow of $436M. Brazil and Switzerland see slight inflows, while Canada and Sweden see outflows.
  • Blockchain equities witness an outflow of $81M: Equity investors are more cautious in the current market, while crypto investors are more bullish.

In its weekly report Digital Asset, CoinShares, an investment firm, revealed that cryptocurrency investment products saw a significant increase in inflows last week, amounting to nearly $600 million. Bitcoin-based offerings were the major contributors, accounting for over 85% of the total inflow.

As Bitcoin’s market performance remained relatively stable, Ethereum continued its upward trajectory, leaving investors curious about future market movements. CoinShares reported a $598 million inflow into cryptocurrency investment products last week, marking the fourth consecutive week of continued inflows.

Bitcoin (BTC) products alone attracted inflows of $570 million last week, pushing the year-to-date flows to $5.6 billion. Interestingly, the recent surge in Bitcoin prices has sparked some interest in betting against price increases. This was evident from the $3.9 million inflow into the Bitcoin Short fund, which is indexed to Bitcoin’s decline.

Other cryptocurrencies like Ethereum (ETH), Chainlink (LINK), and Ripple (XRP) also saw inflows, adding $17 million, $1.8 million, and $1.1 million, respectively. Litecoin (LTC) experienced an inflow of $1.0 million. However, Solana saw net outflows of $3 million, likely due to recent network outages impacting investor sentiment, as noted by James Butterfill, Head of Research.

U.S. Leads Digital Asset Investments Boom, While Other Regions Lag Behind

Surging Interest: Digital Asset Investment Products Receive Strong Inflows

Inflows for the year-to-date have now exceeded the US$5.7 billion mark, representing 55% of the record inflows seen in 2021. Earlier this week, the total assets under management (AuM) reached a peak of US$68.3 billion, the highest level since December 2021. However, this is still significantly lower than the all-time high of US$87 billion recorded in November 2021.

The U.S. has been the main driver of these inflows, with a net $610 million flowing into crypto investment products. However, these figures were influenced by Grayscale, an incumbent issuer, which experienced further outflows totaling $436 million last week.

Brazil and Switzerland experienced slight inflows of US$8.2 million and US$2.1 million, respectively. In contrast, Canada and Sweden witnessed outflows amounting to US$18 million and US$8 million, respectively.

In contrast, blockchain equities are witnessing a different trend. These products saw outflows of $81 million, suggesting that equity investors are exercising more caution in the current market.


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