Digital Asset Investment Products See Mixed Results Amid Record Inflows

Key Points:

• Digital asset investment products saw modest inflows of $245 million last week, driven by Bitcoin with $519 million in new investments and Ethereum ETFs at $2.2 billion.
• Total assets under management reached $99.1 billion, and trading volumes hit a peak of $14.8 billion.
• Grayscale’s existing trust faced significant outflows of $1.5 billion, resulting in a net outflow of $285 million.

Digital asset investment products saw a modest inflow of $245m last week, perhaps reflective of the mixed backdrop for many digital assets.

Read more: Digital Asset Investment Products Saw 3 Consecutive Weeks of Inflows

Digital Asset Investment Products See Mixed Inflows

Trading volumes surged to $14.8 billion, the highest since May, on the back of recent launches of the Ethereum ETFs. Total AUM now stands at $99.1 bln, with YTD inflows reaching a record $20.5 bln.

This flow into Bitcoin reached $519 million, bumping month-to-date flows to $3.6 billion and YTD inflows to a new record of $19 billion. Views are probably improved by the most recent rhetoric with respect to Bitcoin as a strategic reserve asset and, doubtless, by expectations of a Federal Reserve rate cut in September 2024.

Also in the report, spot Ethereum ETFs with inflows of $2.2 billion notched some of their highest since December 2020. ETH ETP trading volume surged 542% after launch. A good part of that increase could have been accounted for through Grayscale seeding its new Mini Trust ETF with capital from its existing closed-end trust, risking a distortion of the real picture on investor sentiment.

Grayscale Trust Faces Significant Outflows Amid Market Dynamics

Off the bullish sentiment, the Grayscale Bitcoin Trust currently has $1.5 billion in outflows, with a net of $285 million in the outflow. The GBTC has kept siphoning off its Bitcoin trust since it launched its ETF back in January 2024.

Broad-based digital asset investment products continued to see strong inflows, with mixed returns reflecting lingering investor uncertainty and market dynamics.