Volume 137: Digital Asset Fund Flows Weekly Report

Largest inflows for a year totalling US$199m following US ETF applications

• Digital asset investment products saw the largest single weekly inflows since July 2022, totalling US$199m, correcting almost half of the prior 9 consecutive weeks of outflows.
• Bitcoin was the primary beneficiary, seeing US$187m inflows last week, representing 94% of the total flows. Short-bitcoin saw outflows for the 9th consecutive week totalling US$4.9m.
• This turn in sentiment didn’t trickle down to altcoins with only very minor inflows.

Digital asset investment products saw the largest single weekly inflows since July 2022, totalling US$199m, correcting almost half of the prior 9 consecutive weeks of outflows. While ETP trading volumes were 170% the average this year, totalling US$2.5bn for the week.

We believe this renewed positive sentiment is due to recent announcements from high profile ETP issuers that have filed for physically backed ETFs with the US Securities & Exchange Commission. Total assets under management (AuM) are now at US$37bn, their highest since before the collapse of 3 Arrows Capital.

Bitcoin was the primary beneficiary, seeing US$188m inflows last week, representing 94% of the total flows. Short-bitcoin saw outflows for the 9th consecutive week totalling US$4.9m, with all 9 week’s outflows representing 60% of total AuM.

Ethereum saw inflows of US$7.8m, representing just 0.1% of AuM relative to Bitcoin’s inflows at 0.7%, suggesting appetite for Ethereum is lower than Bitcoin at present.

This turn in sentiment didn’t trickle down to altcoins with only very minor inflows into XRP and Solana totalling US$0.24m and US$0.17m respectively. But the improved sentiment did encourage some investors to buy multi-asset investment ETPs, with US$8m inflows last week.

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