Digital Asset Fund Flows | February 3rd 2025
2 min read
US$527m inflows, but trade tariffs and DeepSeek news influencing investors
Digital asset investment products saw inflows totalling $527m last week. However, intraweek flows reflected volatile investor sentiment, heavily influenced by broader market concerns, such as the DeepSeek news.
Bitcoin saw inflows totalling US$486m last week while short-bitcoin saw a second week of inflows totalling US$3.7m.
XRP is now the 2nd best performing altcoin, seeing YTD inflows of US$105m with US$15m inflows last week.
Digital asset investment products saw inflows totalling $527m last week. However, intraweek flows reflected volatile investor sentiment, heavily influenced by broader market concerns, such as the DeepSeek news, which triggered $530m in outflows on Monday. Despite this initial sell-off, the market rebounded with over $1bn in inflows later in the week. Given the $44bn in inflows seen in 2024, US$5.3bn inflows year-to-date (YTD) and significant price gains, the current sell-off is not unexpected.
Regionally, the US saw full week inflows totalling US$474m and US$5bn YTD. Similar sentiment was seen in Europe, with US$78m inflows last week and US$93m YTD. Canada suffered last week with US$43m outflows, perhaps due to the threat of trade tariffs imposed by the US.
Bitcoin saw inflows totalling US$486m last week while short-bitcoin saw a second week of inflows totalling US$3.7m. Ethereum ended the week with a net zero flows, but suffered earlier in the week, likely due to its greater exposure to the technology sector and the global growth outlook. XRP is now the 2nd best performing altcoin, seeing YTD inflows of US$105m with US$15m inflows last week.
Blockchain equities have seen YTD inflows of US$160m as investors see current price weakness as a buying opportunity.