Digital Assets Record $42M Inflow; Bitcoin Inflow Totals $19M

• Digital asset investment products observed the most significant inflow in 14 weeks, adding up to $42 million.
• Bitcoin records a $19 million inflow, the largest since August 2022.
• Blockchain equities observed their largest weekly outflow worth $32 million, since May 2022.

According to data shared by CoinShares, digital asset investment products noted their largest inflow for 14 weeks, amounting to $42 million in total. This was most likely triggered by Sam Bankman-Fried’s crypto exchange FTX’s collapse due to unusual involvement with Alameda Research and an $8 million shortfall in capital.

The inflows indicate that investors observed the sudden intense price weakness and took it as an opportunity. While the US market saw an inflow of $29 million, Brazil, Canada, and Sweden followed behind shortly recording $8 million, $4.3 million, and $3.9 million, respectively.

Meanwhile, Switzerland observed minor outflows totalling $4.6 million, despite being the country with the most inflows year-to-date, thus far.

Moreover, Bitcoin simultaneously recorded its largest inflow of $19 million since August 2022. However, although the overall perception is positive, the market was undoubtedly shaken by the recent industry scandals, including the FTX meltdown as it was a blue-chip name across the ecosystem.

Investors’ anxiety was reflected as short-bitcoin investment products observed $12.6 million in inflows.

In addition, Ethereum recorded a second week of minor inflows amounting to $2.5 million. While investors seek comfort in multi-assets which saw their largest inflows of $8.4 million since June, altcoins noted not very significant activity.

Lastly, blockchain equities experienced the largest outflow worth $32 million since May 2022, suggesting conservative investors viewed the asset class as a risk asset and hurried back to safety in the face of uncertain times.