Digital Asset Investment Products See $176M Inflows Amid Market Correction

Key Points:

• Digital asset investment products saw $176 million in inflows last week.
• All regions reported inflows, with the U.S. leading at $89 million, despite the country seeing net outflows of $306 million for the month.

According to CoinShare, digital asset investment products attracted a remarkable inflow of $176 million in the past week as investors rushed in to buy up low market prices.

Read more: Digital Asset Investment Products Saw Their First Outflow of Funds in Four Weeks

Digital Asset Investment Products See Inflows

Although its total assets under management plunged to $75 billion—off more than $20 billion amid the correction—the sector has now rebounded to $85 billion. Trading activity in ETPs was brisk last week at $19 billion, well above the year-to-date average of $14 billion.

The inflow for digital asset investment products was broad-based across all regions, reigniting a new round of interest after the broad correction.

First is the United States, with inflows amounting to $89 million, followed by Switzerland, with inflows of $20 million, Brazil with $19 million, and Canada with $12.6 million. Interestingly, the U.S. is the only country to see net outflows for the month at $306 million.

Bitcoin Sees Mixed Trends and Short ETP Exits

Among the recent market swings, Ethereum has been the most significant beneficiary, with inflows of $155 million last week. The year-to-date inflows of $862 million are the highest since 2021 and were driven by the recent US spot-based ETFs listing.

As such, outflows at the start were really part of Bitcoin’s week—as indeed were the inflows of $13m in the week after it. The biggest outflows in euros were short Bitcoin ETPs, which saw outflows last week totalling $16m, or 23% of their AuM, to help prod the short AuM down to lows not seen since the turn of the year. This significant exodus indeed suggests a change in investor sentiment on Bitcoin.