Digital Asset Investments See $12 Million Inflows as Total Assets Under Management Reaches $25 Billion

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June 26, 2023 06:55 EDT

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Inflows into digital asset investment products reached $12m last week, marking a strong improvement from the net outflows recorded the week before. Total assets under management (AuM) in crypto investment funds has now reached $25bn.

The $12m of inflows into investment products backed by digital assets was made up largely by inflows into regular bitcoin (BTC) funds, as well as short-bitcoin funds that rise in value as bitcoin’s price falls, new data from the crypto research and investment firm CoinShares showed.

For bitcoin-backed funds, the inflows for the week reached $8.8m, while short-bitcoin funds saw $6.7m of inflows. Coming in as the third most popular digital asset fund category were to so-called multi-asset funds, which are backed by two or more digital assets. This category saw inflows of $0.4m.

Worth noting is that the numbers mark the fifth consecutive week of inflows into bitcoin-backed funds, although some of the effect is being countered by inflows into short-bitcoin products during the same time.

On the other hand, ethereum (ETH)-backed funds saw the largest outflows last week, with $3.9m of investor money being pulled out of these funds on a net basis.

“Investor apathy is persistent, with the last 5 weeks of flows, be it inflows or outflows representing less than 0.05% of AuM,” the CoinShares commented by saying in its report.

CoinShares further noted in its report that the strongest inflows were seen in the US, where the weekly inflows totaled $20m. At the other end of the spectrum, Sweden and Switzerland saw the largest outflows, with $5.2m and $4.5m, respectively, being pulled out of crypto investment funds.

The digital asset investment funds tracked by CoinShares are made up of exchange-traded funds (ETFs) listed around the world, as well as various unlisted but regulated investment funds backed by digital assets.

The largest provider in terms of fund flows last week was ProShares, the company behind both the first US-listed bitcoin ETF, BITO, and the first short-bitcoin ETF, BITI.