Third week in a row with weak inflow of crypto products

by Arthur · July 19, 2022

Digital asset investment products experienced a third week of meager inflows, this past week totaling just $ 12 million.

However, it was almost exclusively short-term investment products that saw the most activity, at $ 15 million, according to the latest CoinShares report. Meanwhile, such long-term investment products are pouring in at $ 2.6 million.

According to the report, this represents “new investors who expect further price declines, while those who are now invested do not sell out of positions, and believe that cryptocurrencies are close to bottom.”

America was responsible for most of the dramatic movements, as the United States had $ 20.8 million in inflows, while Canada had $ 13.3 million in outflows. Within Europe, Switzerland and Sweden were the only countries with significant flows, totaling $ 5 million and negative $ 3.1 million.

BTC shorts account for most inflows

While short Bitcoin products took up most of the inflow, as has been the case in recent weeks, long Bitcoin products outpaced a total of $ 2.6 million. The report noted that total assets under management (AuM) had increased from 11.4% since the end of June to $ 17.8 billion.

Last week’s flows of a total of 15 million dollars made it the record fourth week in a row with inflows to short Bitcoin products. This series of inflows now amounts to 88 million dollars, which makes up as much as 61% of total assets.

Ethereum-based investment products saw their fortunes end when smaller outflows of $ 2.5 million ended a three-week series of inflows. However, monthly flows remain positive at $ 6.6 million. Other altcoins saw very little action, apart from Solana, with inflows of $ 500,000.

Continuing its dominance through this turbulent period, multi-asset investment products received inflows of $ 2 million. This consistent performance has brought year-to-date flows to $ 219, surpassing all other types of assets.

Overall, the report concluded that the volumes of investment products are currently very low, trading at only $ 1 billion during the week compared to this year’s weekly average of $ 2.4 billion. According to the report, the “summer decline is here.”

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