Research Summary
The report discusses the continued inflow of investments into digital assets, with a total of US$598m last week. The US saw the majority of these inflows, while Grayscale, a significant issuer, experienced outflows. Bitcoin and Ethereum saw substantial inflows, while Solana experienced outflows. Blockchain equities saw a decrease, indicating investor caution.
Key Takeaways
Continued Inflows into Digital Assets
- Consistent Investment Inflows: Digital asset investment products saw weekly inflows totalling US$598m, marking the fourth consecutive week of inflows. Year-to-date inflows have now surpassed the US$5.7bn mark, accounting for 55% of the record inflows witnessed in 2021.
US Dominates Inflows
- US Leads in Inflows: The US saw most of the inflows at US$610m, impacted by incumbent issuer Grayscale, which saw further outflows totalling US$436m last week. Brazil and Switzerland saw minor inflows, while both Canada and Sweden saw outflows.
Bitcoin and Ethereum See Inflows
- Bitcoin’s Continued Attraction: Bitcoin saw US$570m inflows last week, bringing year-to-date inflows to US$5.6bn. However, recent price rises have prompted minor inflows into short-bitcoin positions which totalled US$3.9m.
- Ethereum’s Steady Inflows: Ethereum saw US$17m inflows last week, indicating continued investor interest in the second-largest cryptocurrency by market cap.
Solana Experiences Outflows
- Solana’s Outflows: Recent outages for Solana have likely impacted sentiment and consequently saw outflows of US$3m, indicating a potential decrease in investor confidence in the asset.
Blockchain Equities See Outflows
- Investor Caution in Blockchain Equities: Blockchain equities continued to see outflows totalling US$81m last week, suggesting equity investors are a little cautious at present.
Actionable Insights
- Monitor Digital Asset Inflows: The consistent inflows into digital assets indicate a sustained interest in this investment class. Investors should keep a close eye on these trends to understand the market dynamics.
- Assess Impact of Issuer Activity: The activity of significant issuers like Grayscale can impact the inflow and outflow of funds. Investors should consider this when making investment decisions.
- Consider Market Sentiment: The outflows from Solana and blockchain equities suggest a shift in market sentiment. Investors should take this into account when assessing potential investments.
