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.

Jun 2, 2021 at 4:00 p.m. UTC
Updated Sep 14, 2021 at 1:05 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.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Morgan Stanley Warns NFTs Next to Watch After UST Collapse, Bukele Announces Mega Banks Meeting in El Salvador

The most valuable crypto stories for Monday, May 16, 2022.

The most valuable crypto stories for Monday, May 16, 2022.

2
First Mover Asia: Metaverse ETFs Are Underperforming Gaming ETFs; Cryptos Return to the Red

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

Public interest continues to grow about the metaverse, but not as much in metaverse ETFs. Does crypto belong in everything?

3
Coinbase Expands Features, Allowing Some App Users to Access Ethereum-Based Dapps

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

The move will let Coinbase users purchase NFTs, trade on decentralized exchanges and borrow and lend on various DeFi platforms.

4
S&P Global Ratings Forms DeFi Group to Build Out Crypto Framework

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.

The credit rating giant named Charles "Chuck" Mounts as chief DeFi officer to lead the unit.