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CoinShares:Investors See the FTX Collapse as an Opportunity With Inflows Totalling US$42m

Validated Individual Expert

Digital asset investment products saw the largest inflows for 14 weeks totalling US$42m. The inflows began later in the week on the back of extreme price weakness prompted by the FTX/Alameda collapse.

Bitcoin was the primary focus with inflows totalling US$19m, the largest since early August this year. However, short-bitcoin investment products also saw inflows totalling US$12.6m.

Blockchain equities saw the largest weekly outflow since May 2022 totalling US$32m, implying that the more conservative investors in the asset class flew to safety.

Digital asset investment products saw the largest inflows for 14 weeks totalling US$42m. The inflows began later in the week on the back of extreme price weakness prompted by the FTX/Alameda collapse. It suggests that investors see this price weakness as an opportunity, differentiating between “trusted” third parties and an inherently trustless system.

Inflows were seen across all regions, most notably the US, Brazil Canada which saw inflows of US$29m, US$8m and US$4.3m respectively. Switzerland was the outlier, seeing minor outflows totalling US$4.6m, although it remains the country with by far the most inflows year-to-date.

Bitcoin was the primary focus with inflows totalling US$19m, the largest since early August this year. However, short-bitcoin investment products also saw inflows totalling US$12.6m highlighting that while sentiment is predominantly positive, it has spooked some investors.

Ethereum saw a second week of minor inflows totalling US$2.5m. Multi-asset saw its largest inflows since June 2022 of US$8.4m suggesting investors see it as a relative safe haven, while there was very little activity in altcoins.

Blockchain equities saw the largest weekly outflow since May 2022 totalling US$32m, implying that the more conservative investors in the asset class flew to safety.

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