Ethereum Drives Market Revival with $155 Million Inflows During Recent Decline

Ethereum has emerged as a major beneficiary of the recent downturn in the market, with investors seizing the opportunity presented by the price weakness. Data indicates that Ethereum has attracted a substantial $155 million in inflows over the past week. CoinShares reports that these latest inflows have propelled its year-to-date total to $862 million, the highest level since 2021, largely driven by the recent introduction of US spot-based ETFs.

The positive sentiment extends beyond Ethereum to other crypto assets. Bitcoin, for instance, experienced a notable uptick in inflows towards the end of the week, following initial outflows at the beginning, resulting in a weekly total of $13 million. Conversely, short Bitcoin ETPs witnessed their largest outflows since May 2023, amounting to $16 million (23% of AuM), reducing their AuM for short positions to the lowest level of the year, signaling a significant investor exodus.

CoinShares’ Digital Asset Fund Flows Weekly Report revealed that the optimistic trend also encompassed investment products linked to Solana, XRP, and Cardano, which received weekly inflows of $4.5 million, $0.7 million, and $0.6 million, respectively.

Taking a broader perspective, digital asset investment products collectively saw $176 million in inflows as investors capitalized on recent price drops. Although Total Assets under Management (AuM) for these products had fallen to $75 billion – shedding over $20 billion during the market correction – it has since rebounded to $85 billion according to CoinShares’ estimates.

Moreover, trading volume in Exchange-Traded Products (ETPs) surged to $19 billion for the week, surpassing the $14 billion weekly average observed this year.

CoinShares also highlighted an unusual trend of inflows from all regions last week, reflecting a collective optimism towards the asset class post the recent price decline. The most substantial inflows originated from the US, Switzerland, Brazil, and Canada, amounting to $89 million, $21.3 million, $20 million, and $19.2 million, respectively.

Furthermore, Germany, Australia, and Sweden witnessed $12.6 million, $5.9 million, and $5.1 million in weekly inflows. Despite this, the US remains the only country with net outflows for the month, totaling $306 million.