Digital asset fund flows | September 30th 2024

Inflows rise to $1.2b, Despite Divergent Regional and Altcoin Flows

• Digital asset investment products saw a third consecutive week of inflows totalling US$1.2bn, which we believe is a reaction to continued expectations of dovish monetary policy in the US.

• The approval of options for certain US-based investment products likely boosted sentiment, although trading volumes have not seen a commensurate rise.

• Ethereum broke its 5-week negative spell, with inflows of US$87m, the first measurable inflows since early-August.

Digital asset investment products saw a third consecutive week of inflows totalling US$1.2bn, which we believe is a reaction to continued expectations of dovish monetary policy in the US and associated positive price momentum, with total assets under management (AuM) rising by 6.2% last week. The approval of options for certain US-based investment products likely boosted sentiment, although trading volumes have not seen a commensurate rise, in fact, they declined slightly by 3.1% week-on-week.

Regionally, sentiment was polarised, with the US and Switzerland seeing inflows of US$1.2bn and US$84m respectively, with the latter being the largest since mid-2022. In contrast, Germany and Brazil saw outflows of US$21m and US$3m respectively.

Bitcoin saw inflows of US$1bn, although this also spurred further inflows into short-bitcoin investment products of US$8.8m.

Ethereum broke its 5-week negative spell, with inflows of US$87m, the first measurable inflows since early-August. Conversely, Solana saw US$4.8m outflows. Sentiment was mixed in altcoins, with Litecoin and XRP seeing inflows of US$2m and US$0.8m respectively, while Binance and Stacks saw outflows of US$1.2m and US$0.9m respectively.

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