Digital Asset Investment Products Gains US$114m Inflows
Digital assets have been gaining more attention from investors, with the total inflows of digital asset investment products reaching US$114m last week. This marks a 4-week run of inflows that now total US$345m, which is a sign of improving sentiment for the asset class. The inflows almost fully corrected the prior 6-week run of outflows that amounted to US$408m.
Digital asset investment products saw inflows totalling US$114m last week, US$104m are Bitcoin, which is seeing continued improving sentiment for the asset class. This 4-week run of inflows now total US$345m. https://t.co/9hYOgg4fxP
— Wu Blockchain (@WuBlockchain) April 17, 2023
Leading Digital Asset Investment Inflows
Most of the inflows were seen in the US and Germany, with inflows of US$58m and US$35m respectively, but they were also seen across most geographies. This improvement in sentiment comes at a time of very low volumes in the Bitcoin market, averaging just US$5.6bn per day compared to US$12bn for the full year.
Bitcoin has been the focus of investors, with inflows of US$104m last week, bringing its total 4-week run to US$310m. This indicates that investors are seeking a safe haven in digital assets, given the ongoing traditional finance challenges. However, there is still divided opinion on Bitcoin, with short Bitcoin seeing inflows totaling US$14.6m last week.
Ethereum Struggles
Despite the successful launch of Ethereum’s yield features, Shapella, only US$0.3m of inflows were seen last week. This indicates that investors are still cautious about investing in altcoins, with little activity in altcoins except for Polygon, which saw US$2.1m of outflows last week.
Blockchain equities saw inflows of US$5.8m last week, with recent price appreciation pushing total assets under management to US$1.9bn, the highest since October 2022, pre-FTX. This indicates that investors are also interested in investing in blockchain technology companies.
The inflows into digital asset investment products are a sign of improving sentiment for the asset class, with Bitcoin still being the focus of most investors. However, caution remains with regard to altcoins, with little activity seen in this space. Blockchain equities are also gaining more attention from investors, with recent price appreciation pushing total assets under management to their highest level since October 2022.
