Research Summary
The report provides an analysis of the digital asset fund flows for the first week of 2024. It highlights the inflows and outflows of various cryptocurrencies, including Bitcoin, Ethereum, and Solana, as well as blockchain equities. The report also discusses the impact of the Grayscale vs SEC lawsuit on the total inflows.
Key Takeaways
Strong Start to 2024 for Digital Asset Investment
- Positive Inflows: Digital asset investment products saw inflows totalling US$151m in the first week of 2024. This brings the total inflows since the Grayscale vs SEC lawsuit to US$2.3bn, representing 4.4% of total assets under management (AuM).
Bitcoin Dominates Inflows
- Bitcoin’s Performance: Bitcoin saw the largest share of inflows at US$113m, representing 3.2% of AuM over the last 9 weeks. However, short-bitcoin saw outflows totalling US$1m in the first week of the year.
Ethereum and Other Altcoins See Inflows
- Ethereum’s Inflows: Ethereum saw inflows totalling US$29m, with inflows over the last 9 weeks totalling US$215m, indicating a positive shift in sentiment.
- Other Altcoins: Other altcoins that saw notable inflows were Cardano, Avalanche and Litecoin, seeing US$3.7m, US$2m and US$1.4m respectively.
Solana Experiences Outflows
- Solana’s Outflows: Solana, on the other hand, has not had such a good start to the year, with outflows totalling US$5.3m.
Blockchain Equities See Positive Inflows
- Blockchain Equities: Blockchain equities also had a good start to the year, seeing US$24m inflows over the last week.
Actionable Insights
- Monitor Bitcoin’s Performance: Given the significant inflows into Bitcoin, it would be prudent to keep a close eye on its performance and market trends.
- Assess Ethereum’s Positive Sentiment: The marked turnaround in sentiment for Ethereum suggests a need to understand the factors driving this change.
- Investigate Solana’s Outflows: The outflows from Solana warrant further investigation to understand the reasons behind this trend.
- Consider Blockchain Equities: The positive inflows into blockchain equities suggest they could be a potential area of interest for investors.
