Ethereum seems to have weathered the recent market downturn quite well, with investors seizing the opportunity to buy in at lower prices. Data from CoinShares reveals that Ethereum has attracted $155 million in inflows over the past week alone. This influx of funds has pushed the year-to-date total inflows for Ethereum to $862 million, the highest level since 2021. The recent introduction of US spot-based ETFs has played a significant role in boosting investor sentiment towards Ethereum.
While Ethereum has been a standout performer, other cryptocurrencies have also witnessed a positive trend in investor sentiment. Bitcoin, for instance, experienced a notable increase in inflows towards the end of the week, bouncing back from initial outflows at the start. This resulted in a weekly total of $13 million in inflows for Bitcoin. On the flip side, short Bitcoin ETPs saw their largest outflows since May 2023, totaling $16 million. This significant exit of funds has brought the AuM for short positions to the lowest level of the year, indicating a substantial investor retreat.
The positive momentum in the cryptocurrency market extended beyond Ethereum and Bitcoin. Investment products tied to Solana, XRP, and Cardano also received notable weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively, as per CoinShares’ Digital Asset Fund Flows Weekly Report. This collective influx of funds into various digital asset products reflects investors’ eagerness to capitalize on the recent price declines.
Despite the recent market correction that led to a drop in Total Assets under Management (AuM) for digital asset products by over $20 billion, there has been a rebound with AuM now estimated at $85 billion. CoinShares highlighted a surge in trading volume for Exchange-Traded Products (ETPs) to $19 billion for the week, surpassing the average weekly volume of $14 billion witnessed this year. One interesting trend identified by CoinShares is the inflows from every region last week, indicating a widespread optimism towards the asset class after the price dip. Notable inflows came from the US, Switzerland, Brazil, and Canada, with Germany, Australia, and Sweden also recording significant weekly inflows. Despite the overall positive sentiment, the US stands out as the only country with net outflows for the month, totaling $306 million.
Leave a Reply