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Volume 165: Digital Asset Fund Flows Weekly Report

US$1.18bn inflows last week as US ETFs begin trading — not a record though

  • Digital asset investment products saw US$1.18bn inflows last week (subject to T+2 settlement), although this did not break the record set at the launch of the futures-based Bitcoin ETFs.
  • Trading volumes were US$17.5bn last week, the highest on record, compared to an average of US$2bn per week in 2022.
  • The US saw US$1.24bn of inflows, while minor outflows were seen in Europe.

Digital asset investment products saw US$1.18bn inflows last week (subject to T+2 settlement), although this did not break the record set at the launch of the futures-based Bitcoin ETFs which totalled US$1.5bn back in October 2021. ETP Trading volumes did break records though, trading US$17.5bn last week, the highest on record, compared to an average of US$2bn per week in 2022. These trading volumes represented almost 90% of daily trading volumes on trusted exchanges last Friday, unusually high as they typically average between 2%-10%.

As expected, the United States dominated, seeing US$1.24bn of inflows last week, while Switzerland saw US$21m inflows. We suspect the outflows seen in Europe & Canada (Canada US$44m, Germany US$27m & Sweden US$16m) were basis traders looking to switch from Europe to the US.

Bitcoin saw US$1.16bn inflows last week, representing a significant 3% of total assets under management (AuM), while short-bitcoin also saw minor inflows totalling US$4.1m.

Ethereum saw inflows totalling US$26m and XRP US$2.2m. Solana was the notable exception, seeing only US$0.5m inflows last week.

Blockchain equities also saw large inflows totalling US$98m, bringing total inflows over the last 7 weeks to US$608m.

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