CoinShares Digital Asset Fund Flows Weekly

Investment product inflows last week hit a record total of US$1.31bn following a period of minor outflows. We believe investors have been very price-conscious this year due to the speed at which prices in Bitcoin achieved new highs. The recent price weakness, prompted by recent comments from Secretary of the US Treasury Janet Yellen and the unfounded concerns of a double spend, now look to have been a buying opportunity with inflows breaking all-time weekly inflows.

Record investment product inflows totalling US$1.3bn last week

Investment product inflows last week hit a record total of US$1.31bn following a period of minor outflows. We believe investors have been very price-conscious this year due to the speed at which prices in Bitcoin achieved new highs.

So far this year investors have favoured Bitcoin, comprising 97% of total inflows, despite comprising 83% of digital asset investment products under management.

So far this year volumes in Bitcoin have been considerably higher, trading an average of US$12.3bn a day compared to US$2.2bn in 2020.

So far this year investors have favoured Bitcoin, comprising 97% of total inflows, despite comprising 83% of digital asset investment products under management. Ethereum saw inflows of US$34m last week, although investors have been cautious, with little inflows since early December. Despite the record inflows, investment products have not tested the liquidity of the underlying Bitcoin, with investment products representing only 6.5% of total Bitcoin trading turnover. So far this year volumes in Bitcoin have been considerably higher, trading an average of US$12.3bn a day compared to US$2.2bn in 2020.