Ethereum Dominates 88% of Crypto Investment Products with $176 Million Inflow
Crypto investment products have seen a notable increase in inflows of $176 million as investors took advantage of recent price declines, as per the latest weekly report from CoinShares. James Butterfill, CoinShares’ head of research, highlighted that the total assets under management (AUM) for crypto ETPs dropped to $75 billion during the correction but have since risen to $85 billion.
During this period, the trading volume for exchange-traded products (ETPs) surged to $19 billion, surpassing the weekly average of $14 billion for this year. Ethereum emerged as the primary beneficiary of the market correction, receiving $155 million in inflows last week. This has brought its year-to-date inflows to $862 million, the highest since 2021, largely attributed to the recent introduction of US spot-based ETFs.
The performance of Ethereum ETFs since their launch in July has been commended by market experts. Nate Geraci, president of ETF Store, highlighted that BlackRock’s iShares Ethereum ETF is now among the top six ETF launches in 2024. Notably, the iShares Ethereum ETF has attracted over $900 million in less than three weeks and is expected to reach $1 billion within the week.
Conversely, Bitcoin experienced a mixed performance last week. While the flagship digital asset began the week with outflows, there was a reversal trend towards the end as investors poured $13 million into BTC-related investment products. On the other hand, short Bitcoin ETPs saw significant outflows amounting to $16 million, representing 23% of its AUM, the largest reduction in short positions since May 2023.
Other digital assets such as Solana, XRP, Cardano, and Litecoin also observed modest inflows of approximately $6 million last week. Notably, inflows were witnessed across all regions, indicating a widespread positive sentiment towards the asset class following the recent price correction.
The United States led in inflows with $89 million, followed by Switzerland with $20 million, Brazil with $19 million, and Canada with $12.6 million. However, the US was the only country to experience net outflows month-to-date, totaling $306 million.
In summary, the crypto investment landscape has shown resilience and attractiveness to investors despite market fluctuations, with Ethereum leading the charge in attracting significant inflows amidst the broader positive sentiment towards digital assets.
