Volume 119: Digital Asset Fund Flows Weekly Report

US$32m outflows, but rising prices push AuM to highest since August 2022

• Digital asset investment products saw outflows totalling US$32m last week, the largest since late December 2022. Mid-way through last week the outflows were much higher at US$62m, but sentiment improved by Friday.
• Bitcoin bore the brunt of the negative sentiment, seeing nearly US$25m of outflows, while short-bitcoin investment products saw inflows of US$3.7m.
• Blockchain equities saw inflows totalling US$9.6m last week and have seen 6 consecutive weeks of inflows.

Digital asset investment products saw outflows totalling US$32m last week, the largest since late December 2022. Mid-way through last week the outflows were much higher at US$62m, but sentiment improved by Friday with inflows of US$30m. The negative sentiment amongst ETP investors was not expressed in the broader market with Bitcoin prices rising by 10% over the week, this price appreciation pushed total assets under management (AuM) to US$30bn, their highest level since August 2022. We believe this is due to ETP investors being less optimistic on recent regulatory pressures in the US relative to the broader market.

Bitcoin bore the brunt of the negative sentiment, seeing nearly US$25m of outflows, while short-bitcoin investment products saw inflows of US$3.7m and has seen some of the largest inflows YTD of US$38m, second only to Bitcoin with US$158m.

The negative sentiment was very mixed, with Ethereum, Cosmos, Polygon and Avalanche seeing outflows of US$7.2m, US$1.6m, US$0.8m and US$0.5m respectively. While Aave, Fantom, XRP, Binance and Decentraland all saw inflows between US$0.36m — US$0.26m.

Blockchain equities saw inflows totalling US$9.6m last week and have seen 6 consecutive weeks of inflows highlighting a more constructive sentiment amongst investors.

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