Investors Seeking Diversification in Crypto with Multi-Asset Products Recording Largest Inflows: CoinShares Report
While Bitcoin investment products had minor outflows last week, Ether had minor inflows with Cardano, XRP, and BNB attracting capital.
The second half of 2021 is having a slow start, with the week ending July 9 being a quiet one, not only in terms of price, which remained between $32,000 and $35,000, but also in terms of flows recorded by crypto investment products.
Digital asset investment products saw minor outflows of just $4 million.
Last week was actually “the quietest trading week since October 2020,” according to a report by digital asset manager CoinShares.
Bitcoin investment products recorded outlaws of a mere $7 million last week, while trading volume was $1.58 billion for the week.
A regional divide in Bitcoin inflows has been seen in recent weeks, with North American providers seeing consistent inflows while their European counterparts continue to see outflows.
Purpose, which launched the first bitcoin ETF of North America and has also launched an Ether ETF, had the largest inflow of $13.1 million. Besides Purpose, 21Shares, Bitwise, and others had minimal net inflows.
While the world's largest digital assets manager, Grayscale, had zero flows, CoinShares, 3iQ, and ETC Issuance all three had net outflows.
It was multi-asset investment products that were the most popular, with inflows totaling $1.2 million.
This is evident from the fact that while the leading cryptocurrency products had outflows, the second-largest crypto, Ethereum, had minor inflows of just $0.8 million.
Multi-asset products’ year-to-date inflows now total $362 million, representing 16.5% of assets under management, proportionally larger than Bitcoin’s 15.6% of AuM and Ethereum’s 9.9% of AuM.
While these inflows remain relatively small in comparison to the top two cryptocurrencies, the data does imply that “investors are increasingly looking to diversify their digital asset holdings.”
When it comes to altcoins, Cardano (ADA) was a particularly attractive option for investors, seeing inflows of $0.6 million ADA -0.10% Cardano / USD ADAUSD $ 2.15
$0.00-0.10% Volume 2.04 b Change $0.00 Open $2.15 Circulating 32.9 b Market Cap 70.79 b 4 d Sports Betting Platform DraftKings to Become Polygon Network Validator & Support Custom NFTs Drops in Marketplace 4 d Bitcoin Continues to Attract All the Inflows With Traders Eyeing A BTC Price Jump to $100,000 5 d Over $2 Billion in New Money Has Flowed into CME Bitcoin Futures This Month . XRP also had $0.6 million inflows XRP -0.15% XRP / USD XRPUSD $ 1.09
$0.00-0.15% Volume 2.08 b Change $0.00 Open $1.09 Circulating 46.95 b Market Cap 51.15 b 1 w Ripple Joins The Digital Pound Foundation to Help In The Development of A CBDC In the United Kingdom 1 w Australian Stock Exchange (ASX) to List Crypto-Focused ETF on 'Growing' Investor Demand 1 w Ripple And NelNet Join Forces to Fast-Track Crypto’s March to Renewable Energy , while Binance’s native token BNB had $0.4 million worth of inflows BNB 0.28% Binance Coin / USD BNBUSD $ 482.64
$1.350.28% Volume 1.12 b Change $1.35 Open $482.64 Circulating 166.8 m Market Cap 80.5 b 5 d Over 160 Projects Are Launching on Terra by Early Next Year to 'Amplify Demand for UST' and Send it to $10 Bln, says Founder 1 w China Update: Binance, OKEx, and Gate Kicks Out CNY & Existing Users, WeChat Blocks Searches, Mining Share Goes to Zero 1 w BSC Is Back in the Game as Binance Announces $1 Billion Incentives Program to Pump the Ecosystem , and $0.3 million was reported by Polkadot (DOT). DOT -1.34% Polkadot / USD DOTUSD $ 43.60
-$0.58-1.34% Volume 1.12 b Change -$0.58 Open $43.60 Circulating 987.58 m Market Cap 43.06 b 3 d Cosmos Unveils New Blockchain, Sagan, A Canary Network to Allow Developers to Run Tests And Experiments 4 d Circle’s Stablecoin USDC Launches on Hedera Hashgraph's Network 4 d Bitcoin Continues to Attract All the Inflows With Traders Eyeing A BTC Price Jump to $100,000