Inflows Return Amid US Inflation Data
Last week marked the end of a streak of outflows from digital asset investment products as a total of $29 million flowed into various products. Bitcoin (BTC) emerged as the top gainer, accounting for the majority of gains. James Butterfill, the Head of Research at CoinShares, attributed the resumption of inflows to the recent US inflation data, which fell slightly below expectations. This indicates a decreased likelihood of a September rate hike.
Stable Assets under Management
While the finer details of the fund flows show a small increase in assets under management (AuM), a broader look at the cumulative flows into available exchange-traded products (ETPs) suggests that the total AuM has remained relatively stable over the past year and a half.
Bitcoin Dominates Investor Interest
Bitcoin drew the most attention from investors, with $24 million flowing into BTC products. However, Bitcoin still has ground to cover to regain its previous totals, as $144 million flowed out of these products in the preceding three weeks. Short Bitcoin products experienced a temporary reversal two weeks ago, with $2,000 worth of inflows, but this trend quickly returned to outflows last week, with $2.7 million being pulled from these products. Short Bitcoin products were the only single-crypto products to experience outflows during the week.
Altcoins Gain Momentum
Ethereum led the pack among altcoins, attracting $2.5 million in inflows. Other altcoins like Uniswap, XRP, and Solana also saw inflows of $0.7 million, $0.5 million, and $0.4 million respectively. XRP has now experienced 16 straight weeks of inflows and represents 12% of all AuM. XRP’s AuM has risen by 127% since the start of the year.
Regional Inflow Highlights
Among the various regions, Canada recorded the highest inflows with $24 million, followed by Switzerland with $8 million. Meanwhile, Sweden saw the largest outflows, amounting to $2.4 million.
