Altcoins Gain Favorability Following Recent Price Decline, CoinShares Report Shows

June 19, 2023

Digital asset investment products experienced minor outflows, amounting to a total of US$5.1 million, according to the latest Digital Asset Fund Flows Weekly Report (Volume 136) by CoinShares. However, the end of the week brought some relief as minor inflows were observed following the news of one of the world's largest asset managers applying for a Bitcoin Exchange-Traded Product (ETP) in the United States.

Despite the improving regulatory conditions in Hong Kong, the report highlights the absence of significant inflows into ETPs year-to-date. However, in response to the previous week's crash in altcoin prices, investors showed resilience by adding to their positions, resulting in inflows totaling US$2.4 million.

Although the news of the Bitcoin ETP application triggered some inflows towards the end of the week, these were insufficient to offset the earlier outflows. As a consequence, the report documents a ninth consecutive week of outflows, reaching a cumulative total of US$423 million.

On a regional scale, minor inflows were observed in the United States and Germany, with amounts of US$3.7 million and US$2.4 million, respectively. Looking at the total inflows year-to-date, the United States maintains its leading position with US$147 million in inflows, while Canada lags behind with outflows totaling US$277 million. Despite the improved regulatory landscape in Hong Kong, measurable inflows into ETPs have yet to materialize, and the total assets under management (AuM) remain at a modest US$39 million.

The previous week's altcoin price crash served as a catalyst for investors to increase their positions. Notably, XRP, Cardano, and Polygon attracted significant inflows, amounting to US$1 million, US$0.6 million, and US$0.2 million, respectively.

In terms of outflows, Ethereum experienced the largest decline, totaling US$5 million, while both Tron and Avalanche saw outflows of US$0.4 million each.

Furthermore, blockchain equities witnessed substantial outflows, reaching a notable US$12.3 million, marking the largest outflow since FTX.

For access to the complete research, please visit the CoinShares Blog.

This article is for informational purpose only. No investment or financial advice.


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