Ethereum investment products struggled to attract substantial inflows from institutional investors since the start of 2022. With year-to-date outflows of approximately $451 million, ETH remained the worst performing digital asset among prominent cryptocurrencies. However, the sentiment changed slightly during the past week as ETH products witnessed inflows worth nearly $5 million.
Amid bearish sentiment, institutional investors were more focused on short-Bitcoin investment products. During the last week, multi-asset investment products, Solana (SOL) and Polkadot (DOT) also saw minor inflows.
“Digital asset investment products saw inflows totaling US$64m last week, although the headline figures obscure the fact that a significant majority were into short-bitcoin investment products. Ethereum saw a second week of inflows totaling US$5m last week, breaking the 11-week spell of outflows. Multi-asset (multi-crypto) investment products saw inflows totaling US$4.4m and remain the least affected by recent negative sentiment with minor outflows in only 2 weeks of this year,” CoinShares noted in its weekly report.
In the 4th week of June, Bitcoin investment products witnessed historic outflows. As a result, the overall value of global digital assets under management dropped sharply.
Regional Flows
Apart from Sweden, crypto asset managers across Europe, North America and Australia witnessed inflows during the past week. Crypto asset managers in the US attracted $46 million worth of inflows, the figure includes investment in short-Bitcoin products.
“Small inflows were seen into long investment products in regions other than the US such as Brazil, Canada, Germany and Switzerland totaling US$20m. This highlights investors are adding to long positions at current prices, with the inflows into short-Bitcoin possibly due to first-time accessibility in the US rather than renewed negative sentiment,” the report added.
After the recent weekly flows, global crypto assets under management now stand at around $35.4 billion. The combined value of Bitcoin and Ethereum investment products stands near $32 billion.
