Digital Asset Fund Flows | August 12th 2024

• Digital asset investment products saw inflows totalling US$176m as investors saw recent price weakness as a buying opportunity.

• Ethereum has benefited the most from the recent market correction, attracting US$155m in inflows last week.

• Short Bitcoin ETPs saw their largest outflows since May 2023, totalling US$16m (23% of AuM), reducing AuM for short positions to its lowest level since the start of the year, indicating a substantial investor exit

Digital asset investment products saw inflows totalling US$176m as investors saw recent price weakness as a buying opportunity. Total Assets under Management (AuM) of investment products had fallen to US$75bn, wiping over US$20bn off in the correction, but it has since recovered to US$85bn. Trading activity in ETPs was much higher than usual at US$19bn for the week, versus US$14bn weekly average this year so far.

Unusually, every region saw inflows last week suggesting unanimous positive sentiment towards the asset class following the recent price correction. Most notable was the US, Switzerland, Brazil and Canada with US$89m, US$20m, US$19m and US$12.6m respectively. The US remains the only country to see net outflows month-to-date totalling US$306m.

Ethereum has benefited the most from the recent market correction, attracting US$155m in inflows last week. This brings its year-to-date inflows to US$862m, the highest since 2021, largely driven by the recent launch of US spot-based ETFs.

Bitcoin began the week with outflows but saw significant inflows in the final days, bringing total weekly inflows to US$13m. Short Bitcoin ETPs saw their largest outflows since May 2023, totalling US$16m (23% of AuM), reducing AuM for short positions to its lowest level since the start of the year, indicating a substantial investor exit.