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Volume 190: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Recent price weakness likely seen as a buying opportunity with US$441m inflows

  • Digital asset investment products saw inflows totalling US$441m, with recent price weakness prompted by Mt Gox and the German Government selling pressure likely being seen as a buying opportunity.
  • Bitcoin saw US$398m inflows but unusually represented just 90% of total inflows as investors chose to invest across a much broader set of altcoins.
  • The improved sentiment has not been reflected in blockchain equities which saw a further US$8m outflows last week.

Digital asset investment products saw inflows totalling US$441m, with recent price weakness prompted by Mt Gox and the German Government selling pressure likely being seen as a buying opportunity. Volumes in Exchange Traded Products (ETPs) remained relatively low at US$7.9 billion for the week, reflecting the typical seasonal pattern of lower volumes in the summer months. This represents a 17% lower participation rate compared to the total market for trusted exchanges.

Regionally, the inflows were primarily the US, which saw US$384m, although opportunistic buying was seen across a broad set of countries, most notable were Hong Kong, Switzerland and Canada, seeing US$32m, US$24m and US$12m respectively. Germany being an outlier, seeing US$23m outflows.

Bitcoin saw US$398m inflows but unusually represented just 90% of total inflows as investors chose to invest across a much broader set of altcoins. Most notable of which was Solana, seeing US$16m last week, bringing year-to-date (YTD) inflows to US$57m, making it the best performing altcoin from a flows perspective. Ethereum sentiment seems to have turned, seeing US$10m inflows, but remains the only ETP to have seen net outflow YTD.

This sentiment hasn’t been reflected in blockchain equities which saw a further US$8m outflows last week bringing YTD outflows to US$556m.

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