Second Week of Minute Inflows Marks Low Investor Appetite for Digital Asset Products

Digital asset investment products managed to scrape by with inflows of $8.3 million for the second consecutive week amid months of low trading volumes.

In addition to the prior week’s inflows of just $7 million, this past week marked a continuation of investors maintaining a tepid appetite for digital assets, according to the latest CoinShares report.

Similar to weeks past, trading turnover for investment products remained roughly half the $1 billion weekly average for the year. Incidentally, the report noted less price depreciation than in previous periods when the dollar has rallied.

Asset inflows seen mainly in Europe

Flows were somewhat polarized regionally, with Europe seeing the majority of inflows, while much of the Americas experienced outflows. Germany, Switzerland, and Sweden each have substantial inflows, of $6.4 million, $5.5 million, and $3.2 million respectively, for a total of $15.1 million.

On the flip side, the United States had $6.8 million in outflows, Canada $3.2 million, while Brazil saw inflows of $2.3 million, resulting in net outflows of roughly $9 million.

After breaking a five-week streak of outflows with $17 million in inflows the week prior, Bitcoin-based products managed to keep that streak alive, but just barely, at $100,000 in inflows this past week.

Yet, recent price movements have pushed total assets under management to $15.9 billion, the lowest point since end-June.

Meanwhile, the assets under management (AuM) of short Bitcoin investment products rose to a record $172 million. However, this prompted some profit taking, with short Bitcoin-based products seeing outflows for the first time in seven weeks, amounting to $5.1 million.

For the first time since the Merge took place earlier this month, Ethereum-based investment products saw inflows totaling $7 million. This marked the first positive sentiment after the upgrade and following four straight weeks of outflows.

Recently launched short Ethereum investment products also saw minor inflows amounting to $1.1 million. While other altcoins experienced negligible flows, investors continued to favor multi-asset products, with inflows of $1.8 million last week.