Volume 176: Digital Asset Fund Flows Weekly Report

From CoinShares Research Blog by James Butterfill

Inflows resumed, with US$862m, while trading activity slows

Digital asset investment products saw a recovery in sentiment with inflows totalling US$862m last week, almost fully recovering the prior week’s record US$931m outflows. While this recovery is encouraging, ETF activity is slowing down, with daily trading turnover now at US$5.4bn, down 36% relative to its peak 3 weeks ago, although this remains well above the US$347m 2023 average, implying the initial market hype is cooling.

Regionally, the divergence continues, with the US seeing a further US$897m inflows, while Europe and Canada combined saw US$49m outflows bringing year-to-date outflows to US$785m.

Bitcoin saw inflows totalling US$865m last week, with renewed appetite from new ETF issuers in the US, seeing US$1.8bn inflows, offset by Grayscale’s US$967m outflows. Short-bitcoin saw outflows for the second week, totalling US$2m.

Ethereum saw a 4th week of outflows of US$19m, being a common trait post network upgrades, reflecting investor apprehension of their success.

Altcoins saw inflows totalling US$18.3m last week, with Solana leading, seeing US$6.1m inflows. Other notable flows were from Filecoin, Polkadot and Chainlink, with inflows of US$3.9m, US$2.4m and US$1.9m respectively.