Volume 144: Digital Asset Fund Flows Weekly Report

Inflows return with US$29m, dominated by Bitcoin

• Digital asset investment products saw inflows this week totalling US$29m, likely due to the recent US inflation data, which was slightly below expectations, signifying that a September rate hike is less likely.
• Bitcoin was the primary focus, seeing US$27m inflows, which follows 3 prior weeks of outflows totalling US$144m.
• XRP saw US$0.5m inflows and is now on a 16-week run of inflows, while AuM has risen 127% since the beginning of the year.

Digital asset investment products saw inflows this week totalling US$29m following a three-week run of outflows. We believe the improved sentiment is due to the recent US inflation data, which was slightly below expectations, signifying that a September rate hike is less likely.

Regionally, most of the activity was in Canada, which saw US$24m inflows, although from a YTD perspective it remains well behind other countries. Switzerland was the only other country to see substantive inflows which totalled US$8m.

Bitcoin was the primary focus, seeing US$27m inflows, which follows 3 prior weeks of outflows totalling US$144m. Short-bitcoin, following a week of very minor inflows (US$2k), resumed its run of outflows of US$2.7m last week, and unusually being the only asset to see outflows. This data suggests that sentiment for Bitcoin and the broader crypto market remains supportive despite the seasonally low volumes.

Ethereum led the altcoins, seeing US$2.5m inflows, while Uniswap and Solana saw inflows of US$0.7m, and US$0.4m respectively.

XRP saw US$0.5m inflows and is now on a 16-week run of inflows, representing 12% of assets under management (AuM). XRP’s AuM has risen 127% since the beginning of the year.

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