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

The inflow and outflow of investments into digital asset investment products in the past week indicate that investors are still cautious.

This is according to the new digital asset fund flows report published by the digital asset management firm, CoinShares.

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.

The report noted that this suggests a “continued lack of engagement amongst investors at present.”

CoinShares explained: “Post Ethereum Merge flows indicate continued caution amongst investors with a 4th week of outflows totalling US$15m.

“This run of outflows, while minor, now totals US$80m. Our research highlights The Merge got off to a good start with a high participation amongst the validators.”

The Ethereum Merge, or the hard fork of the Ethereum blockchain technology from Proof-of-Work to Proof-of-Stake, was completed on September 15th.

CoinShares reported that Ether, the second-biggest cryptocurrency, recorded minor outflows in late August.

“Very minor inflows were seen in Solana, Cardano, XRP, Tezos, Chainlink and Uniswap,” CoinShares added.

The firm attributed minor inflows due to the decision of most investors waiting out the expected upgrade of the Ethereum network, which was completed last Thursday.

Analysis of the Flows

According to CoinShares, the data available as of last Friday shows that digital assets under management were worth US$26.9 billion.

Bitcoin led this pack with $16.6 billion, which was followed by Ethereum with US$6.6 billion and multi-asset products at US$2.6 billion.

Also, the firm’s research shows that Bitcoin recorded total inflows of US$17 million last week.

CoinShares noted that the inflow is the first following five weeks of outflows that totalled US$93 million.

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.

“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, the Head of Research at CoinShares.