Ethereum Dominates $176M Crypto Fund Inflows Amid Investor Interest in Market Dip
Crypto funds saw a surge in inflows of $176 million last week, with Ethereum (ETH) investment products standing out with $155 million in inflows, as per CoinShares. After a dip in total assets under management (AUM) to $75 billion during the correction, a rebound to $85 billion was observed.
Ethereum attracted $155 million in inflows, contributing to a year-to-date total of $862 million, the highest since 2021. This increase was largely fueled by the recent introduction of US spot-based exchange-traded funds (ETFs), with investors seizing the opportunity presented by recent price declines.
Bitcoin experienced initial outflows but later saw significant inflows totaling $13 million towards the end of the week. Conversely, short Bitcoin exchange-traded products (ETPs) witnessed substantial outflows of $16 million, marking the largest since May 2023 and reducing the AUM for short positions to its lowest level since the beginning of the year.
In a positive sign, all regions experienced inflows, indicating widespread optimism following the price correction. The US led with $89 million in inflows, followed by Switzerland with $20 million, Brazil with $19 million, and Canada with $12.6 million.
Trading activity in ETPs surged to $19 billion for the week, surpassing the $14 billion weekly average for the year.
US ETFs wrapped up the week with outflows, particularly in Ethereum ETFs, which saw nearly $16 million exiting their holdings, totaling $68.5 million in outflows from August 5 to August 9. On a different note, Bitcoin ETFs recorded net outflows of $167 million during the same period, closing with $89.7 million in negative netflows.
The outflows for US-traded Bitcoin ETFs accounted for 0.32% of their total AUM, a figure that surprised Bloomberg ETF analyst Eric Balchunas, who had expected outflows of 2% to 3% of Bitcoin ETFs’ total AUM after a week that began with a 21% correction in BTC prices.
