Research Summary

This report discusses the recent trends in digital asset fund flows. It highlights minor outflows in the market, but a positive trend for Bitcoin. The report also notes high trading volumes, despite the negative sentiment over the past seven weeks. Specific digital assets such as Polygon, Ethereum, and Solana are discussed, with Solana experiencing inflows for the ninth consecutive week.

Key Takeaways

Market Sentiment and Trading Volumes

  • Minor Outflows: The digital asset market experienced minor outflows totaling US$11.2m, contributing to a seven-week total of US$342m in outflows.
  • High Trading Volumes: Despite the negative sentiment and outflows, trading volumes were significantly higher than average, reaching US$2.8bn for the week, 90% above the year-to-date average.
  • Regulatory Concerns: The market has been affected by investor concerns and hopes for regulation on digital assets, with a recent delay in spot ETF approvals in the US impacting sentiment.

Bitcoin’s Performance

  • Bitcoin Inflows: Bitcoin saw inflows totaling US$3.8m, indicating a positive trend despite the overall market outflows.
  • Short Bitcoin Outflows: Short Bitcoin experienced outflows for its 19th consecutive week, totaling US$3.3m, with total assets under management (AuM) falling 48% from this year’s peak.

Altcoins’ Performance

  • Polygon and Ethereum Outflows: Polygon and Ethereum experienced outflows of US$8.6m and US$3.2m respectively, indicating a negative trend for these altcoins.
  • Solana Inflows: Solana, on the other hand, saw inflows for the 9th consecutive week, totaling US$0.7m. The year-to-date inflows of US$26m suggest it is currently the most favored altcoin among investors.

Actionable Insights

  • Monitor Bitcoin’s Performance: Despite the overall market outflows, Bitcoin has seen positive inflows. This trend is worth monitoring for potential opportunities.
  • Consider Regulatory Developments: Regulatory developments, such as the delay in spot ETF approvals in the US, can significantly impact market sentiment and should be taken into account when making investment decisions.
  • Investigate Solana’s Popularity: Solana’s consistent inflows suggest it is currently favored by investors. This trend could be worth investigating for potential opportunities.

Visit the full report here

Related Research