Digital-Asset Investment Products Draw $1.4 Billion, Signaling Rebound in Risk Appetite

Source

Suehyeon Lee

Summary

Digital-asset investment products recorded $1.4 billion in net inflows last week, with net inflows in seven of the past eight weeks, signaling a recovery in risk appetite.
Bitcoin (BTC) products posted $1.1 billion in net inflows last week, bringing year-to-date inflows to $3.1 billion, while Ethereum (ETH) products drew $328 million, their largest weekly inflow since January.
Last week's inflows amounted to 0.91%% of total AUM, the highest share this year, lifting crypto fund AUM to $155 billion. Markets see this as a sign that institutional money is returning and that expectations for a medium- to long-term rally are building again.

Forecast Trend Report by Period

Heavy inflows into digital-asset investment products suggest risk appetite is rebounding quickly.

The Kobeissi Letter said on April 22 that digital-asset investment products recorded $1.4 billion in net inflows last week, the largest weekly total since the third week of January.

The market has now posted net inflows in seven of the past eight weeks, marking the strongest stretch of fund inflows since October.

Bitcoin accounted for most of the money moving into the market. Bitcoin investment products drew $1.1 billion last week, bringing cumulative inflows this year to $3.1 billion.

Ethereum investment products attracted $328 million, their biggest weekly inflow since January. That lifted year-to-date inflows to about $197 million.

Last week's inflows were equal to 0.91% of total assets under management, the highest weekly share this year. Total AUM for digital-asset investment products rose to $155 billion.

Markets are reading the fund flows as a sign that appetite for risk assets is returning. In particular, the return of institutional money into Bitcoin-focused products is reviving expectations for a medium- to long-term advance.

BTC