Digital asset investment products experienced relatively modest inflows of $245 million last week, reflecting a mixed performance across various digital assets.
This reportedly occurred despite trading volumes rising to $14.8 billion, the highest since May, driven by recent Ethereum ETF launches.
Price appreciation elevated total assets under management (AuM) to $99.1 billion, with year-to-date (YTD) inflows reaching a record $20.5 billion.
Bitcoin Leads Inflows, Ethereum Faces Outflows
Notably, according to CoinShares’ report, Bitcoin led the way with robust inflows of $519 million, bringing its month-to-date (MTD) inflows to $3.6 billion and YTD inflows to a record $19 billion. This surge is attributed to US electioneering comments positioning Bitcoin as a potential strategic reserve asset and heightened expectations for a Federal Reserve rate cut in September 2024.
Conversely, Ethereum experienced significant outflows of $284.9 million last week. Despite this, Ethereum’s MTD inflows stand at $877.1 million, indicating broader positive sentiment.
Multi-asset funds saw moderate inflows of $8.7 million, while Solana recorded a minor outflow of $2.7 million. Other assets such as Litecoin, XRP, Cardano, Chainlink, and Short Bitcoin witnessed small inflows ranging from $0.3 million to $2.5 million. Notably, “Short Bitcoin” saw a significant YTD inflow of $47 million despite recent outflows.
Diversified Providers Attracted Inflows
Furthermore, the launch of US spot-based Ethereum ETFs sparked substantial market activity, marking the largest inflows since December 2020.
Specifically, Grayscale Investments LLC/U faced substantial weekly and YTD outflows, with the latter reaching $19 billion, reflecting a shift in investor sentiment. iShares ETFs/USA emerged as a dominant player, reporting the highest weekly inflow of $1.2 billion and a YTD inflow of $20 billion. Fidelity ETFs/USA also showed strong inflows across all time frames, with weekly inflows of $30 million.
Meanwhile, 21Shares AG and ARK 21 Shares/USA recorded moderate inflows, with YTD inflows of $21 million and $2.6 billion, respectively. Bitwise ETFs/USA reported positive YTD inflows of $2.1 billion, suggesting moderate investor interest. CoinShares XBT and Purpose Investments Inc ETFs experienced outflows, with YTD outflows of $378 million and $450 million, respectively.
US Dominated in All Regional Metrics
Regionally, the United States dominated in all metrics, with the highest weekly inflow of $272 million, MTD inflows of $4.3 billion, and YTD inflows of $20.7 billion. The United States also held the largest AuM at $76 billion. Germany faced significant outflows across all periods, with a weekly outflow of $59.6 million, MTD outflow of $75.5 million, and YTD outflow of $325 million.
Canada, despite a notable YTD outflow of $489 million, showed positive weekly and MTD inflows of $2.5 million and $46.5 million, respectively. Switzerland reported strong inflows, particularly MTD inflows of $189.7 million, reflecting positive investor sentiment.
Australia, Brazil, and Hong Kong generally experienced positive inflows, with YTD inflows of $64 million, $168 million, and $363 million, respectively. Sweden faced outflows across most periods, with a weekly outflow of $2.6 million, MTD outflow of $4.9 million, and YTD outflow of $331 million. Other regions contributed moderate inflows, with YTD inflows of $17 million, enhancing overall market diversity.