Digital Asset Tracker: Crypto, Blockchain and Metaverse Fund Flows
Data covers the period 8 August to 12 August 2022
The net value flowing into and out of crypto-related funds that trade on regulated stock exchanges throughout Europe and North America offers a useful overview of how institutions are treating top cryptoassets, notably Bitcoin and Ethereum, and whether markets are leaning bullish or bearish.
This data includes weekly net inflows and outflows for blockchain and digital asset company-focused stocks and shares ETFs, as well as metaverse ETFs. As such it provides a rounded picture of the total digital asset investment universe.
- Ethereum investment products see $280m seven-day net inflows
- Bitcoin investment products see $198m seven-day net inflows
- Ethereum Merge supercharges institutional investor interest
- Clarity over Proof of Stake switch sees Ethereum lead Bitcoin by 40%+
- Investors pounce on price weakness to add to Blockchain and Metaverse ETFs
Highlights
Bitcoin investment products saw inflows of almost $200m in the last week indicating that the recent rally in crypto bullishness from July continues, as US economic data shows relatively lower inflation growth.
Ethereum investment products outperformed Bitcoin investment products by more than 40% ($283m net inflows vs $198m), indicating that a definitive date for the Ethereum Merge has supercharged institutional investor interest in Ethereum.
Despite price weakness in blockchain and digital asset ETFs in general, fund flows were positive for the week, suggesting that investors are continuing to find value in beaten-down tech and crypto company stocks and shares.
Metaverse ETFs continued to show positive net inflows, implying that there remains strong investor interest in infrastructural products despite the 2022 market downturn
Bitcoin investment products still lead Ethereum on a total AUM basis, with $4.13bn vs $2.18bn.
Bitcoin Fund Flows
Bitcoin investment products saw net inflows of $198m over the last seven days, suggesting that slowing US inflation growth has added to bullishness in crypto markets in general.
The US CPI figure was 8.5%, which means US inflation is still near four-decade highs. But any indication that inflation is trending down in relative terms will act as a catalyst into rate-sensitive assets like Bitcoin.
The largest weekly net inflows came via the Purpose Bitcoin ETF (BTCC) with $63.6m, followed by Bitcoin Strategy ETF (BITO) with $31.5m, and ETC Group Physical Bitcoin ETP (BTCE) with $28.4m.
Ethereum Fund Flows
Ethereum investment products saw net inflows of over $280m in the last seven days, outperforming Bitcoin investment products by 42.7%.
Clarity around a specific date for the long-awaited Merge of 15 September 2022 (some six years in the making), which will turn off Proof of Work on the Ethereum blockchain, and replace it with Proof of Stake, has added to broad bullishness on Ethereum’s future direction and development.
The largest weekly net inflows of $64.4m came via Ether Tracker Euro (COINETHE), followed by $59.9m for Purpose Ethereum ETF (ETHH) and $52.2m of net inflows into CI Galaxy Ethereum ETF (ETHX).
Blockchain and Digital Asset ETF Flows
Blockchain and digital asset UCITS ETFs saw net inflows of $38m in the last seven days.
The largest net inflows of $33m came via the Invesco BCHN ETF, followed by Van Eck’s DAPP ETF ($4.2m), and ETC Group’s KOIN ETF ($0.4m).
Metaverse ETF Flows
Metaverse UCITS ETFs saw seven-day net inflows of $0.4m, which represents 33% of the net $1.2m inflows over the last 30 days, suggesting that investor interest in Metaverse ETFs is trending higher.
The largest net inflows of $0.3m came via the ETC Group METR ETF, followed by Roundhill Ball’s METV ETF ($0.08m).
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