According to the most recent Digital Asset Fund Flows data published on a weekly basis by CoinShares, the rate of inflows has all but stopped one week after digital asset investment products recorded their greatest weekly inflow of $160 million since July 2022.
The crypto data analytics company reports that “trading volumes in investment products fell by 33% compared to the prior week, with digital asset investment products saw inflows reaching a dismal US$2.5m.”
Both of the data sets show significantly less engagement in the cryptocurrency market than the previous week, according to CoinShares. “This was replicated in the larger bitcoin market where trade volumes on trusted exchanges decreased by 61%,” the company added.
The seven-day moving average of volumes was, in fact, about $22.5 billion as of Monday, down from almost $46 billion in mid-March, in accordance with data provided by The Block. Reduced volumes coincide with Bitcoin’s recent sideways movement in the $28,000 region and other cryptocurrencies’ experience of rangebound conditions.
Under the hood, Bitcoin sentiment is really more positive than could be expected. By market capitalization, the largest cryptocurrency in the world had inflows of $8.8 million while short Bitcoin investment products saw outflows of $2.5 million.
The monetary worth of all managed assets has increased in line with the price of bitcoin, reaching “their greatest level since the failure of 3 Arrows Capital in June 2022 at US$23.5bn,” according to CoinShares.
Smaller coins like Litecoin, Tron, Solana, XRP, and Polygon all had moderate tiny inflows while larger coins like Ethereum and multi-asset packages witnessed a combined outflow of $5.8 million.
Inflows into short Ethereum (US$0.5m), according to CoinShares, “indicate investors were apprehensive for the impending Shanghai upgrade which will enable un-staking (yield distribution)”.
After US banking failures in mid-March, according to data from alternative cryptocurrency analytics company CryptoQuant (which instead uses on-chain data), the amount of Bitcoin held by digital asset managers—which can include trusts and exchange-traded products—has been increasing in recent weeks.
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