Ethereum ETFs Experience $2.2 Billion Inflows Amid Bitcoin’s Growing Political Support
CoinShares has reported that digital asset investment products saw net inflows of $245 million in the previous week. The company’s weekly report highlighted that the trading volume for exchange-traded products (ETPs) surged to its highest level since May, reaching $14.8 billion, mainly due to the introduction of spot Ethereum ETFs in the US.
The total assets under management (AUM) for crypto ETPs rose to $99.1 billion, with year-to-date inflows hitting a record $20.5 billion. Bitcoin attracted inflows of $519 million last week, contributing to total flows of $3.6 billion for the month and $19 billion for the year.
James Butterfill, the head of research at CoinShares, linked the inflows to renewed confidence in Bitcoin, fueled by discussions on its potential as a reserve asset for the US government. At the Bitcoin conference in Nashville, US politicians, including Republican Presidential Candidate Donald Trump and pro-Bitcoin Senator Cynthia Lummis, proposed making Bitcoin a strategic Treasury asset.
Senator Lummis introduced a bill aiming to accumulate 1 million BTC for the US reserve over five years, while Trump pledged to establish the US as a “Bitcoin superpower” and committed to retaining the government’s existing 210,000 BTC without selling.
On the other hand, the debut of Ethereum ETFs led to the largest inflows for the digital asset since December 2020. According to the CoinShares report, these products witnessed inflows totaling $2.2 billion, resulting in a 542% surge in trading volumes.
Butterfill mentioned that the inflow figure was influenced by Grayscale’s seeding of its new Mini Trust ETF with capital from its incumbent closed-end trust, potentially explaining recent outflows. He also noted that outflows were observed in Grayscale’s existing ETHE fund, amounting to $1.5 billion, resulting in a net outflow of $285 million for Ethereum ETPs.
These outflows mirrored those seen in the firm’s Bitcoin trust in January 2024 following the Securities and Exchange Commission’s approval of ETFs for trading. The data suggests dynamic movements in the crypto investment landscape, reflecting changing investor sentiments and market trends.
