Digital assets report: Inflows rise even as crypto market stagnates

  • Leading coins BTC and ETH logged inflows last week.
  • Short BTC and Short ETH, on the other hand, posted outflows.

Inflows from digital asset investment products totaled $136 million last week, bringing the third consecutive week of inflows to $470 million, CoinShares found in a new report

According to the digital assets investment firm, the past three weeks of consecutive inflows successfully corrected the preceding nine weeks of outflows, which totaled $423 million. This brought the year-to-date flows to a net positive $231 million. 

Source: Coinshares

Interestingly, despite the inflows logged last week, the period was marked by a decrease in trading turnover. CoinShares found:

“Trading turnover has slowed though, with investment products totaling US$1bn for the week compared to US$2.5bn average in the prior 2 weeks. These lower volumes may be due to the seasonal effects, where lower volumes are typically seen during July and August.”

Bitcoin takes the front seat

For the third consecutive week, Bitcoin [BTC] remained “the focus amongst investors,” as the king coin logged inflows, totaling $133 million, last week. This accounted for 98% of the total inflows recorded during that period.

Although BTC lingered within a narrow price range during that period, an 8% uptick was seen in inflows into digital assets last week. 

The additional $133 million in inflows brought the leading coin’s YTD net inflows to $290 million, with its assets under management (AuM) valued at $25 billion.

This represented the second week of BTC logging a net inflow YTD, having been in a net outflow position of $171 million three weeks ago. 

On the other hand, short-Bitcoin investment products saw an outflow of $1.18 million last week, representing 11 weeks of consecutive outflows. However, despite this recent bearishness for short-Bitcoin, it remained the second best-performing asset in terms of inflows YTD at $58 million, data from the report showed. 

Source: Coinshares

Ethereum recorded inflows, but at what cost?

While leading altcoin Ethereum [ETH] posted inflows that totaled $2.9 million, CoinShares noted that the coin “has only marginally benefitted from improved investor sentiment.” The report stated:

“The last 3 weeks of inflows represent just 0.2% of total assets under management (AuM) compared to Bitcoin’s 1.9%, and remains in a negative net flows position year-to-date of US$63m.”

Source: Coinshares

As for other altcoins, Solana [SOL], Ripple [XRP], Polygon [MATIC], and Litecoin [LTC] recorded inflows of $1.2 million, $900,000, $800,000, $500,000, respectively, while Cosmos [ATOM] and Cardano [ADA] saw minor outflows. 

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