Digital Asset Investment Products See Mixed Results Amid Record Inflows

2 mins mins

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.

Digital Asset Investment Products See Mixed Results Amid Record 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.

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