James Butterfill, Head Of Research at CoinShares, has shared the results of the latest digital asset fund manager survey.
As noted in the update, 75% of all respondents believe Bitcoin and Ethereum have “the most compelling growth outlook.”
As mentioned in the report, digital assets weighting in portfolios “rose from 0.4% of the average respondent portfolio to 1.3%, indicating an increasing allocation to digital assets and representing the highest level since Q1 2023.”
The update further noted that while regulatory concerns “remain top of the risks list, it continues to fall, with the combination of a government ban and regulation having fallen from 63% six months ago to 50% today.”
The report pointed out that a rising number of investors “have shifted away from believing the FED has made an outright policy error to being unsure.”
In another update from CoinShares, shared earlier this week, it was noted that Digital asset investment products “saw significant outflows from a global perspective, totaling US$500m. Regionally, outflows were focused on the US, Switzerland and Germany totaling US$409m, US$60m and US$32m respectively.”
Recent price declines prompted by the substantial outflows from the incumbent ETF issuer (Grayscale) in the US totaling US$5bn (since 11th January 2024), have likely prompted further outflows other regions.”
The outflows in Grayscale last week “totaled US$2.2bn, although data suggests outflows are beginning to subside as the daily total continued to reduce towards over the week.”
In stark contrast, newly issued US ETFs “saw inflows totalling US$1.8bn last week, and since launch on 11th January 2024 have seen US$5.94bn of inflows, meaning on a net basis, including Grayscale inflows since launch now total US$807m.”
Coinshares believe that “much of the price falls, despite these positive flows, was due to Bitcoin seed capital being acquired prior to 11th January.”
Bitcoin has understandably been “the primary focus, seeing US$479m outflows, while short-bitcoin saw further inflows totaling US$10.6m. Altcoins predominantly saw outflows last week, with Ethereum seeing US$39m, and Polkadot and Chainlink seeing US$0.7m and US$0.6m respectively.”
Blockchain equities saw further inflows “totaling US$17m last week.”