Volume 148: Digital Asset Fund Flows Weekly Report

Sentiment remains poor, with a further US$59m outflows last week

• Digital asset investment products saw outflows totalling US$59m last week, this run of outflows now totals US$294m.
• Bitcoin suffered the most, seeing outflows of US$69m last week, while short-bitcoin saw its largest single week of inflows since March 2023, totalling US$15m.
• Blockchain equities did not escape the negative sentiment, with US$10.8m outflows, marking the 5th consecutive week of outflows.

Digital asset investment products saw outflows totalling US$59m last week, marking the fourth consecutive week of outflows, this run of outflows now totals US$294m and represents 0.9% of total assets under management (AuM). Inflows were also seen in short investment products, suggesting sentiment remains poor for the asset class. We believe continued worries over regulation of the asset class and recent dollar strength are the most likely reasons for this. Trading volumes also dropped significantly, by 73% in comparison to the prior week to just US$754m for the week.

Bitcoin suffered the most, seeing outflows of US$69m last week, while short-bitcoin saw its largest single week of inflows since March 2023, totalling US$15m. Timing wise this is interesting as the inflows in March also came at a time of heightened regulatory uncertainty.

Ethereum also suffered, seeing outflows totalling US$4.8m. This brings year-to-date outflows to US$108m, representing 1.6% of AuM, demarcating it as the least loved digital asset amongst ETP investors this year. Conversely, XRP continued to see inflows totalling US$0.7m last week.

Blockchain equities did not escape the negative sentiment, with US$10.8m outflows, marking the 5th consecutive week of outflows.

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