Despite the plunging crypto markets, the last week saw an influx of $40 million into digital asset investment products.
According to the latest CoinShares report, investors adding to their positions by taking advantage of the original price discount were responsible for last week’s inflows after four weeks of outflows. Inflows into North American investment products dominated last week, totaling $66 million, which was countered by $26 million in outflows from European products.
Despite last week’s influx, the report casts some doubts about whether negative sentiment had run its course over the past four weeks. It argues that recent investment product trading activity does not match what has historically been observed during periods of extreme price weakness.
coin flows
As always bitcoin-based investment products saw the largest share of inflows, amounting to $45 million this past week. While these products have experienced the most positive sentiment from investors recently, total assets under management for bitcoin-based products have fallen to levels seen during the same period of low sentiment at the start of the year.
But while bitcoin-based products surged, ethereum-based investment products continued their negative streak, with outflows amounting to $12.5 million. This brings the total year-over-year outflows to $207 million, representing 0.8% of the overall AUM.
Among other altcoins, Solana was the only one to see notable inflows, amounting to $1.9 million, while Cardano and Ripple each received an inflow of $200,000, and Polkadot saw an outflow of $400,000. Additionally, multi-asset investment products also saw inflows during the past week, amounting to $1.7 million.
As a sign of continued negative sentiment, short bitcoin experienced the second largest weekly inflow on record at $4 million. While the AUM for these products has reached a record high of $45 million, it is just 0.15% of the Long Bitcoin investment products.
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