Weekly Digital Asset Fund Flows Report
In the latest report by CoinShares, digital asset investment products saw a third consecutive week of outflows, totaling US$30 million. While this trend continued, there were signs of a slowdown in outflows compared to previous weeks. Notably, Ethereum (ETH) experienced the largest outflows since August 2022, amounting to US$61 million, making it the worst-performing asset in terms of net flows for the year.
Ethereum’s Struggles Persist
Over the past two weeks, Ethereum has witnessed significant outflows totaling US$119 million. This prolonged trend has positioned Ethereum as the underperforming digital asset of the year. Despite attempts by the broader market to stabilize, Ethereum continues to face challenges that hinder its growth.
Inflows for Bitcoin and Multi-Asset Products
- Multi-asset and Bitcoin (BTC) exchange-traded products (ETPs) recorded inflows during the same period.
- Multi-asset ETPs led the way with US$18 million in inflows, followed by Bitcoin ETPs with US$10 million.
- Short-Bitcoin products experienced outflows of US$4.2 million, indicating a potential shift in sentiment towards Bitcoin.
Regional Investment Highlights
- The United States witnessed the highest inflows at US$43 million, showing positive sentiment towards digital assets.
- Brazil and Australia also experienced inflows of US$7.6 million and US$3 million, respectively, indicating growing interest in crypto investments.
- On the contrary, Germany, Hong Kong, Canada, and Switzerland saw outflows totaling US$29 million, US$23 million, US$14 million, and US$13 million, respectively.
Altcoins and Blockchain Equities Performance
- Among altcoins, Solana (SOL) and Litecoin (LTC) attracted notable inflows, totaling US$1.6 million and US$1.4 million, respectively.
- Despite the positive sentiment in the broader crypto market, blockchain equities faced outflows of US$545 million this year, representing 19% of assets under management (AuM).
Hot Take: Closing Thoughts on Digital Asset Flows
As the digital asset market experiences fluctuations in fund flows, it is essential for investors to stay informed about the latest trends and developments. While Ethereum struggles with outflows, Bitcoin and multi-asset products show resilience with inflows. Regional investment trends also highlight varying sentiments towards digital assets across different markets. With altcoins like Solana and Litecoin gaining traction, the overall crypto market continues to evolve, presenting opportunities and challenges for investors.
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