Ethereum and Solana Maintain Popularity Among Institutional Investors with Ongoing Inflows

Last week, Ethereum and Solana saw net inflows despite a general price correction in the cryptocurrency market. The latest Digital Asset Fund Flows Weekly Report by CoinShares revealed that these investment products collectively attracted an impressive $176 million in inflows over the week. This positive trend was observed across all regions, indicating a widespread global investor interest.

In a surprising turn of events, Ethereum-based investment products stood out by attracting the most inflows during the week, diverging from the typical dominance of Bitcoin in the market. Institutional investors continued to show strong interest in digital assets despite market fluctuations, demonstrating their sustained confidence in the long-term potential of cryptocurrencies. The total Assets under Management (AuM) of investment products experienced a dip from $95 billion to $75 billion due to the extended crypto market correction. However, consistent inflows helped push the AuM back up to $85 billion.

Trading volume in exchange-traded products (ETPs) hit $19 billion last week, surpassing the $14 billion weekly average for the year. Notably, Ethereum-based investment products emerged as the primary beneficiaries of these inflows, receiving $155 million, which accounted for 88% of the total inflows. This marked a significant shift in investor preference, with Ethereum ETPs witnessing year-to-date inflows reaching a multi-year peak of $862 million.

Contrastingly, Bitcoin attracted only $13 million in inflows, while multi-asset investment products followed with $18.3 million. Despite a price drop below $115 early in the week, Solana-based products managed to secure $4.5 million in inflows. Short-Bitcoin ETPs experienced their largest outflow since May 2023, with $16 million withdrawn, representing 23% of the total assets under management for these products.

Geographically, all regions saw inflows last week, with the US leading at $89 million. Switzerland, Brazil, and Canada also witnessed significant inflows. The shift away from bearish strategies, as seen in the outflows from Short-Bitcoin ETPs, aligns with the broader trend of renewed confidence in digital assets. The market appears to be on the path to recovery from corrections, with several large-market-cap cryptocurrencies starting to show gains in the past 24 hours.

Overall, the data reflects a positive sentiment towards Ethereum and Solana, indicating a growing interest from investors worldwide in these digital assets.