Investor Participation in Digital Asset Investment Products Falls with Inflows of US$2.5m, says CoinShares Report

By 0xGorki On Apr 3, 2023

According to the latest report by CoinShares, the week ending on April 1 saw a lacklustre performance in terms of investor activity in digital asset investment products. The report revealed that inflows into these products totalled just US$2.5m, a significant drop from the previous week.

Additionally, trading volumes in investment products decreased by 33% compared to the prior week, indicating less participation in the crypto market.

Bitcoin, the largest cryptocurrency by market cap, saw supportive sentiment with inflows of US$8.8m, while short bitcoin saw outflows of US$2.5m. The price appreciation over the week resulted in Bitcoin’s total assets under management being at their highest since the collapse of 3 Arrows Capital in June 2022, reaching US$23.5bn.

However, Ethereum experienced outflows of US$2.8m, and inflows into short-Ethereum were US$0.5m, suggesting investors remained concerned about the upcoming Shanghai upgrade. The upgrade will allow for un-staking, which could impact yield distribution.

Flows into altcoins were mixed, with XRP and Polygon receiving inflows totalling US$0.8m and US$0.3m, respectively. Binance and Polkadot, on the other hand, saw outflows totalling US$0.34m and US$0.29m, respectively.

Regionally, Germany saw inflows of US$21m, while the US, Canada, and Switzerland all experienced outflows totalling US$12.4m, US$3.9m, and US$1.5m, respectively.

Overall, the report by CoinShares suggests that investor activity in digital asset investment products was subdued in the week ending April 1. While Bitcoin saw supportive sentiment, other cryptocurrencies saw mixed activity, and investors remained concerned about the upcoming Ethereum upgrade.

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