‘Post Ethereum Merge Crypto Flows Indicate Continued Caution among Investors’

<p class="MsoNormal">The inflow and outflow of investments into digital asset investment products in the past week indicates that investors are still cautious of investing. </p><p class="MsoNormal">This is according to the new digital asset fund flows <a href="https://coinshares.com/research/digital-asset-fund-flows">report</a> published by digital asset management firm, CoinShares.</p><p class="MsoNormal">According to the firm, cryptocurrency-based products recorded a total inflow of US$7 million in the past week, marking another week of low activity.</p><p class="MsoNormal">The report noted that this suggests a “continued lack of engagement amongst investors at present”. </p><p class="MsoNormal">CoinShares explained, “Post Ethereum Merge flows indicate continued caution amongst investors with a 4th week of outflows totalling US$15m. </p><p class="MsoNormal">“This run of outflows, while minor, now totals US$80m. Our research highlights <a href="https://www.financemagnates.com/cryptocurrency/what-is-the-ethereum-merge/" target="_blank">The Merge</a> got off to a good start with a high participation amongst the validators.”</p><p class="MsoNormal">The <a href="https://www.financemagnates.com/cryptocurrency/the-ethereum-merge-can-change-corporate-perceptions/" target="_blank">Ethereum Merge</a>—or the hard fork of the Ethereum blockchain technology from Proof-of-Work to Proof-of-Stake—was completed on September 15th.</p><p class="MsoNormal">CoinShares reported that Ether, the second-biggest cryptocurrency, <a href="https://www.financemagnates.com/cryptocurrency/crypto-investment-products-volume-hits-lowest-since-october-2020/">recorded minor outflows</a> in late August.</p><p class="MsoNormal">“Very minor inflows were seen in Solana, Cardano, XRP, Tezos, Chainlink and Uniswap,” CoinShares added.</p><p class="MsoNormal">The firm attributed the minor inflows to the decision of most investors to wait out the expexted upgrade of the Ethereum network, which was completed happened last Thursday.</p><p class="MsoNormal">Analysis of the Flows</p><p class="MsoNormal">According to CoinShares, data available as of last Friday shows that digital assets under management were worth US$26.9 billion.</p><p class="MsoNormal">Bitcoin led this pack with $16.6 billion, and was followed by Ethereum with US$6.6 billion, and multi-asset products at US$2.6 billion.</p><p class="MsoNormal">Also, the firm’s research shows that <a href="https://www.financemagnates.com/tag/bitcoin/" target="_blank">Bitcoin</a> recorded total inflows of US$17 million last week. </p><p class="MsoNormal">CoinShares noted that the inflow is the first following a five-week outflows that totalled US$93 million.</p><p class="MsoNormal">Furthermore, the firm reported that short-Bitcoin recorded minor inflows that totalled US$2.6 million, with assets under management coming in at US$169 million.</p><p class="MsoNormal">“Multi-asset investment products remain a stalwart during this bearish period having only seen a few weeks of outflows this year. Year-to-date inflows now total US$224m almost matching Bitcoin’s total inflows, implying investors are seeking safety in numbers,” explained James Butterfill, CoinShares’ Head of Research.</p> This article was written by Solomon Oladipupo at www.financemagnates.com.

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