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CoinShares Volume 151: Digital Asset Fund Flows Weekly Report

Validated Individual Expert

Recent US Government Quagmire and Treasure prices fuel inflows of US$21m

CoinShares
  • Digital asset investment products saw inflows last week for the first time in 6 weeks totalling US$21m.
  • We believe the inflows are a reaction to a combination of positive price momentum, fears over US government debt prices and the recent quagmire over government funding.
  • Solana continues to shine, with inflows of US$5m, marking its 27th week of inflows and just 4 weeks of outflows this year.

Digital asset investment products saw inflows last week for the first time in 6 weeks totalling US$21m. Earlier in the week it looked as if it would be another week of outflows, with the inflows coming late in the week (Friday) in what we believe is a reaction to a combination of positive price momentum, fears over US government debt prices and the recent quagmire over government funding. Despite this most recent price pick up, volumes remain seasonally low in both the investment product market and the broader crypto market.

The recent regional divergence persists, with the US seeing outflows totalling US$19m last week, while Europe and Canada saw inflows of US$23m and US$17m respectively.

Bitcoin inflows totalled US$20m last week, seeing the majority of inflows, while outflows continue in short-bitcoin which saw US$1.5m last week, bringing outflows since April to US$85m.

Very little activity was seen in the altcoin space, Solana continues to shine, with inflows of US$5m, marking its 27th week of inflows and just 4 weeks of outflows this year, highlighting it as the most loved altcoin this year. Ethereum saw outflows for a 7th consecutive week, totalling US$1.5m, marking it as the least loved altcoin.

Blockchain equities saw outflows of US$8.4m, inline with a broader sell-off in the technology sector.

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