Inflows Into Digital Asset Funds Recover Slightly as Demand Rises for Altcoin Products

Digital asset funds posted inflows over the past week as investors rotate into altcoin products.

AccessTimeIconJun 2, 2021 at 4:00 p.m. UTC
Updated Mar 6, 2023 at 2:54 p.m. UTC

Net inflows into digital asset funds totaled a relatively tepid $74 million last week after a month of volatility in cryptocurrencies sent investors off to the sidelines. The latest positive, albeit anemic, figure follows record outflows for the previous two weeks totaling $151 million.

However, demand for altcoin investment products is picking up, suggesting investors are starting to diversify outside of bitcoin funds, according to a report published by CoinShares on Tuesday.

  • “Ethereum achieved its highest market share, peaking at nearly 27% of all investment products last week,” wrote CoinShares.
  • While bitcoin investment products saw minor outflows of $4 million last week, investors have rotated into proof-of-stake digital asset funds in cardano, polkadot and XRP, which remain popular with inflows.
  • Overall, “the price correction had a minor impact on investment flows the previous week, but this looks to have recovered, with all product providers seeing inflows,” according to CoinShares.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.