Third Straight Week of Weak Crypto Product Inflows

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

However, it was short investment products almost exclusively that saw the most activity, amounting to $15 million, according to the latest CoinShares report. Meanwhile, long investment products saw outflows of $2.6 million. 

According to the report, this represents “new investors expecting further price downside, while those currently invested are not selling out of positions, believing crypto prices are close to a bottom.”

The Americas were responsible for most of the dramatic movements, as the United States had $20.8 million in inflows, while Canada saw $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 respectively.

BTC shorts accounting for most inflows

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

Last week’s flows totaling at $15 million made it the record fourth consecutive week of inflows into short Bitcoin products. This streak of inflows now amounts to $88 million, constituting a whopping 61% of AuM.

Ethereum-based investment products saw their luck run out as minor outflows of $2.5 million ended a three-week run of inflows. However, month-to-date flows remain positive at $6.6 million. Other altcoins saw very little action, apart from Solana, with inflows of $500,000. 

Continuing their dominance throughout this turbulent period, multi-assets investment products received inflows of $2 million. This consistent performance has brought year-to-date flows to $219, outpacing any other type of asset.

Overall, the report concluded that investment product volumes are currently very low, trading only $1 billion over the week compared to the year’s weekly average of $2.4 billion. According to the report, “the summer doldrums are here.”

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